Published on 5/2/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.12 million trigger autocallable contingent yield notes on Stoxx, S&P
By Wendy Van Sickle
Columbus, Ohio, May 2 – HSBC USA Inc. priced $2.12 million of trigger autocallable contingent yield notes due April 30, 2027 linked to the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if each index closes at or above its 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.
The payout at maturity will be par plus the final coupon unless either index finishes below the threshold level, 50% of the initial level, in which case investors will lose 1% for every 1% decline 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
|
| Underlying indexes: | Euro Stoxx 50, S&P 500
|
| Amount: | $2,119,000
|
| Maturity: | April 30, 2027
|
| Coupon: | 8.5%, payable quarterly if each index closes at or above barrier on quarterly observation date
|
| Price: | Par of $10
|
| Call: | At par if each index closes at or above its initial level on any quarterly observation date
|
| Payout at maturity: | Par plus final coupon unless either index finishes below threshold level, in which case 1% loss for every 1% decline of the worse performing index
|
| Initial levels: | 2,387.45 for S&P, 3,578.71 for Stoxx
|
| Barriers: | 1,671.22 for S&P, 2,505.10 for Stoxx; 70% of initial levels
|
| Thresholds: | 1,193.73 for S&P, 1,789.36 for Stoxx; 50% of initial levels
|
| Pricing date: | April 26
|
| Settlement date: | April 28
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 0%
|
| Cusip: | 40435D672
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
