Published on 8/30/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $21.51 million contingent coupon buffered securities linked to S&P 500
By Wendy Van Sickle
Columbus, Ohio, Aug. 30 – HSBC USA Inc. priced $21.51 million of contingent coupon buffered securities with trigger upside participation due Aug. 31, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index’s closing level remains at or above the coupon trigger, 85% of the initial index level, on each day during a quarter, the notes will pay a contingent coupon for that quarter at the rate of 5% per year. If the index closes below the coupon trigger on any trading day, investors will receive the contingent coupon calculated up to and including that trading day and no further contingent coupon payments will be paid on the notes.
The payout at maturity will be par unless the index closes below the coupon trigger during the life of the notes, in which case the payout per $1,000 principal amount of notes will be $1,000 multiplied by the sum of one plus the index return plus 15%. This amount will be greater than par if the index return is greater than negative 15%.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent coupon buffered securities
|
| Underlying index: | S&P 500
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| Amount: | $21,505,000
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| Maturity: | Aug. 31, 2021
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| Coupon: | 5% per annum if index closes at or above trigger level on each trading day during a quarterly observation period; otherwise, coupon calculated to and including that trading day and not further coupon will be paid
|
| Price: | Par
|
| Payout at maturity: | Par unless index closes below coupon trigger during the life of the notes, in which case payout per $1,000 principal amount of notes will be $1,000 multiplied by sum of one plus the index return plus 15%
|
| Initial level: | 2,169.04
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| Barrier level: | 1,843.68, 85% of initial level
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| Pricing date: | Aug. 26
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| Settlement date: | Aug. 31
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
|
| Cusip: | 40433UTM8
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