Published on 4/18/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.51 million trigger autocallable contingent yield notes on indexes
By Marisa Wong
Morgantown, W.Va., April 18 – HSBC USA Inc. priced $2.51 million of trigger autocallable contingent yield notes due April 21, 2026 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.5% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning April 18, 2017.
The payout at maturity will be par unless either index finishes below the 50% downside threshold level, in which case investors will be fully exposed to any losses of the worse performing index.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $2,512,460
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| Maturity: | April 21, 2026
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| Coupon: | 7.5%, payable quarterly if each index closes at or above coupon barrier on quarterly observation date
|
| Price: | Par of $10
|
| Call: | Beginning April 18, 2017, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
|
| Payout at maturity: | Par unless either index finishes below downside threshold, in which case full exposure to decline of lesser performing index
|
| Initial levels: | 2,080.73 for S&P, 1,130.923 for Russell
|
| Coupon barriers: | 1,456.51 for S&P, 791.646 for Russell, 70% of initial levels
|
| Downside thresholds: | 1,040.37 for S&P, 565.462 for Russell, 50% of initial levels
|
| Pricing date: | April 15
|
| Settlement date: | April 20
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40434N416
|
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