Published on 12/5/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.93 million autocallable securities on S&P, Russell, Stoxx
By Wendy Van Sickle
Columbus, Ohio, Dec. 5 – HSBC USA Inc. priced $3.93 million of autocallable securities with contingent coupon and contingent downside due Dec. 6, 2021 linked to the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 6.25% if each index closes above its 65% barrier on the observation date that quarter.
If each index closes at or above its initial level on any quarterly call date after six months, the notes will be called at par plus the coupon.
The payout at maturity will be par plus the final coupon if each index finishes at or above its barrier. Otherwise, investors will be fully exposed to the loss of the least performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable securities with contingent coupon and contingent downside
|
| Underlying indexes: | S&P 500, Russell 2000, Euro Stoxx 50
|
| Amount: | $3,925,000
|
| Maturity: | Dec. 6, 2021
|
| Coupon: | 6.25%, payable quarterly if each index closes above its 65% barrier on the observation date that quarter
|
| Price: | Par
|
| Call: | Automatically at par plus coupon if each index closes at or above initial level on any quarterly call date after six months
|
| Payout at maturity: | Par plus coupon if each index finishes at or above its barrier level; par if least performing index falls by up to 35%; otherwise, full exposure to loss of least performing index
|
| Initial levels: | 2,626.07 for S&P, 1,542.297 for Russell, 3,589.91 for Stoxx
|
| Barriers: | 1,706.9455 for S&P, 1,002.49305 for Russell, 2,333.4415 for Stoxx, 65% of initial level
|
| Pricing date: | Nov. 29
|
| Settlement date: | Dec. 4
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.21%
|
| Cusip: | 40435FKB2
|
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