Published on 1/19/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.38 million 10% contingent income autocalls tied to ndexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 19 – HSBC USA Inc. priced $1.38 million of contingent income autocallable securities due July 22, 2020 linked to the worst performing of 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 contingent quarterly coupon at an annual rate of 10% if each index closes at or above its 80% coupon threshold every day that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly call review date.
The payout at maturity will be par unless either index finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. is the agent with distribution through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | S&P 500 index, Russell 2000 index and Euro Stoxx 50 index
|
| Amount: | $3.3 million
|
| Maturity: | July 22, 2020
|
| Coupon: | 10% per year, payable quarterly if each index closes at or above coupon threshold every day that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index
|
| Call: | At par if each index closes at or above initial level on any quarterly call date
|
| Initial levels: | 2,802.56 for S&P, 1,586.658 for Russell and 3,612.78 for Stoxx
|
| Downside/coupon thresholds: | 2,242.048 for S&P, 1,269.3264 for Russell and 2,890.224 for Stoxx, 80% of initial levels
|
| Pricing date: | Jan. 17
|
| Settlement date: | Jan. 22
|
| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as a distributor
|
| Fees: | 2.5%
|
| Cusip: | 40435FRR0
|
|
|
© 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.
