Published on 12/17/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.82 million buffered autocallables with rebate return linked to Russell, S&P
By Angela McDaniels
Tacoma, Wash., Dec. 17 – HSBC USA Inc. priced $5.82 million of buffered autocallable yield notes with rebate return due June 19, 2017 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its initial level on June 15, 2016, Dec. 14, 2016 or June 14, 2017, the notes will be automatically called at par plus an annualized call premium of 9.5%.
If the notes are not called and the final return of the lesser-performing index is less than zero but greater than or equal to negative 20%, the payout at maturity will be par plus 10.5%. Otherwise, investors will lose 1.25% for every 1% that the lesser-performing index declines beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered autocallable yield notes with rebate return
|
| Underlying indexes: | Russell 2000, S&P 500
|
| Amount: | $5,815,000
|
| Maturity: | June 19, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final return of lesser-performing index is less than zero but greater than or equal to negative 20%, par plus 10.5%; otherwise, 1.25% loss for every 1% that lesser-performing index declines beyond 20%
|
| Call: | Automatically at par plus annualized call premium of 9.5% if each index closes at or above initial level on June 15, 2016, Dec. 14, 2016 or June 14, 2017
|
| Initial levels: | 1,131.552 for Russell 2000 and 2,043.41 for S&P 500
|
| Buffer level: | 905.242 for Russell 2000 and 1,634.728 for S&P 500
|
| Pricing date: | Dec. 15
|
| Settlement date: | Dec. 18
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.05%
|
| Cusip: | 40433UFE1
|
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