Published on 3/6/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.72 million two-year market-linked autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, March 7 – HSBC USA Inc. priced $4.72 million of market-linked securities – autocallable with contingent coupon and contingent downside due March 4, 2019 linked to the least performing of the S&P500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a quarterly coupon at an annual rate of 6.7% if each index closes at or above its 65% coupon trigger on the observation date for the quarter.
Beginning Aug. 26, the notes will be called at par plus the coupon if each index closes at or above its initial level on any observation date.
The payout at maturity will be par unless any index finishes below its 65% barrier level, in which case investors will be fully exposed to the loss of the least-performing index.
HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Market-linked securities – autocallable with contingent coupon and contingent downside linked
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| Underlying indexes: | S&P 500, Russell 2000, Euro Stoxx 50
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| Amount: | $4,721,000
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| Maturity: | March 4, 2019
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| Coupon: | 6.7%, payable quarterly if each index closes above coupon trigger on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless any index finishes below barrier level, in which case one-to-one exposure to loss of least performing index
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| Call: | At par if each index closes at or above its initial level on any quarterly observation date beginning Aug. 26
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| Initial index levels: | 2,363.64 for S&P, 1,386.684 for Russell, 3,319.61 for Stoxx
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| Coupon trigger/barriers: | 1,536.366 for S&P, 901.3446 for Russell, 2,157.7465 for Stoxx, 65% of initial levels
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| Pricing date: | Feb. 28
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| Settlement date: | March 3
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| Agents: | HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC
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| Fees: | 1.755%
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| Cusip: | 40433UQ82
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