Published on 6/21/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $8.62 million contingent interest autocallables on indexes
By Devika Patel
Knoxville, Tenn., June 21 – HSBC USA Inc. priced $8.62 million of contingent income callable securities due June 23, 2027 linked to the worst performing of the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 8% if each index closes at or above its coupon barrier level, 75% of its initial index level, on the determination date for that quarter.
The notes are callable at par on any quarterly determination date beginning Dec. 20, 2017.
If each index finishes at or above its downside threshold level, 60% of its initial index level, the payout at maturity will be par plus the final contingent coupon, if any. If the final level of any index is less than its downside threshold level, investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent, with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income callable securities
|
| Underlying indexes: | S&P 500 and Nasdaq-100
|
| Amount: | $8,618,000
|
| Maturity: | June 23, 2027
|
| Coupon: | 8% per year, payable quarterly if each index closes at or above coupon barrier level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon, if any; if final level of any index is less than downside threshold level, 1% loss for each 1% decline of lowest-performing index from initial level
|
| Call option: | At par on any quarterly determination date beginning Dec. 20, 2017
|
| Initial index levels: | 2,437.03 for S&P and 5,726.311 for Nasdaq
|
| Coupon barrier levels: | 1,827.7725 for S&P and 4,294.73325 for Nasdaq; 75% of initial levels
|
| Downside thresholds: | 1,462.218 for S&P and 3,435.7866 for Nasdaq; 60% of initial levels
|
| Pricing date: | June 20
|
| Settlement date: | June 23
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40435FAA5
|
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