Published on 5/1/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $16.25 million callable contingent income securities linked to S&P 500
By Angela McDaniels
Tacoma, Wash., May 1 – HSBC USA Inc. priced $16.25 million of callable contingent income securities due May 3, 2027 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 the rate of 7.5% 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, 60% of its initial level, the payout at maturity will be par. If the index finishes below the downside threshold level, investors will be fully exposed to the index’s decline from its initial level.
Beginning April 30, 2018, the notes will be callable at par on any interest payment date.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income securities
|
| Underlying index: | S&P 500
|
| Amount: | $16,249,000
|
| Maturity: | May 3, 2027
|
| Coupon: | 7.5% per year, payable quarterly if index closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above downside threshold level, par; if index finishes below downside threshold level, full exposure to index’s decline from initial level
|
| Call option: | Beginning April 30, 2018, callable at par on any interest payment date
|
| Initial level: | 2,384.20
|
| Coupon barrier level: | 1,788.15, or 75% of initial level
|
| Downside threshold: | 1,430.52, or 60% of initial level
|
| Pricing date: | April 28
|
| Settlement date: | May 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 3.5%
|
| Cusip: | 40433U3M6
|
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