Published on 10/11/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.51 million contingent income securities tied to S&P 500
By Marisa Wong
Morgantown, W.Va., Oct. 11 – HSBC USA Inc. priced $4.51 million of contingent income securities due Oct. 5, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a coupon at a rate of 7.1% per year if the index closes at or above the coupon barrier level, 75% of the initial index level, on the observation date for that quarter.
If the index finishes at or above the downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final coupon, if applicable. If the index finishes below the downside threshold, investors will be fully exposed to the index’s decline.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is acting as distributor.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income securities
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Underlying index: | S&P 500
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Amount: | $4,509,000
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Maturity: | Oct. 5, 2026
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Coupon: | 7.1% per year, payable each quarter that index closes at or above its coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | If the index finishes at or above the downside threshold level, par plus the final coupon, if applicable; if the index finishes below the downside threshold, investors will be fully exposed to the index’s decline
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Initial index level: | 2,168.27
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Coupon barrier: | 1,626.2025, 75% of initial level
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Downside threshold: | 1,084.135, 50% of initial level
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Pricing date: | Sept. 30
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Settlement date: | Oct. 5
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Agent: | HSBC Securities (USA) Inc.
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Distribution: | Morgan Stanley Wealth Management
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Fees: | 3.5%
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Cusip: | 40433UVN3
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