Published on 1/31/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $42.48 million contingent yield trigger autocallables on S&P, Russell
By Marisa Wong
Morgantown, W.Va., Jan. 31 – HSBC USA Inc. priced $42.48 million of trigger autocallable contingent yield notes due Jan. 29, 2027 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 coupon on a quarter at an annual rate of 7.17% 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 after one year.
The payout at maturity will be par unless either index finishes below the 50% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $42,480,540
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| Maturity: | Jan. 29, 2027
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| Coupon: | 7.17%, payable quarterly if indexes close at or above coupon barriers on quarterly observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless either index finishes below downside threshold, in which case full exposure to decline of lesser-performing index
|
| Call: | At par if indexes close at or above initial levels on any quarterly observation date after one year
|
| Initial index levels: | 1,370.704 for Russell 2000 and 2,294.69 for S&P 500
|
| Coupon barriers: | 959.493 for Russell 2000 and 1,606.28 for S&P 500, 70% of initial levels
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| Downside thresholds: | 685.352 for Russell 2000 and 1,147.35 for S&P 500, 50% of initial levels
|
| Pricing date: | Jan. 27
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| Settlement date: | Jan. 31
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
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| Cusip: | 40435C575
|
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