Published on 9/28/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.75 million autocallable barrier notes on Stoxx, ETF
By Wendy Van Sickle
Columbus Ohio, Sept. 28 – HSBC USA Inc. priced $1.75 million of autocallable barrier notes with contingent return and step-down call threshold feature due Sept. 29, 2021 linked to the Euro Stoxx 50 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 10.5% a year if each underlying closes at or above its call level on any annual observation date.
The call level will be 100% of the initial level on the first observation date, 97.5% on the second, 95% on the third and 92.5% on the fourth.
The payout at maturity will be par plus a contingent payment of 10% unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with contingent return and step-down call threshold feature
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| Underlying assets: | Euro Stoxx 50 index and iShares MSCI Emerging Markets exchange-traded fund
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| Amount: | $1,747,000
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| Maturity: | Sept. 29, 2021
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | Par plus 10% unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer
|
| Call: | Automatically at par plus 10.5% per year if each underlying closes at or above call level on an annual review date
|
| Call levels: | 100% of initial level on first review date, 97.5% on second, 95% on third, 92.5% on fourth
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| Initial levels: | 3,541.42 for index, $45.38 for ETF
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| Trigger values: | 2,478.994 for index and $31.766 for ETF; 70% of initial levels
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| Pricing date: | Sept. 22
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| Settlement date: | Sept. 29
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 2.25% Cusip: | 40435FES2
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