Published on 2/1/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $20.55 million trigger autocallable contingent yield notes on Stoxx 50, Stoxx Banks
By Wendy Van Sickle
Columbus, Ohio, Feb. 1 – HSBC USA Inc. priced $20.55 million trigger autocallable contingent yield notes due Feb. 3, 2021 linked to the Euro Stoxx Banks 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% if each index closes at or above its coupon barrier, 65% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the contingent coupon, if any, unless either index finishes below the 65% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying indexes: | Euro Stoxx Banks and Euro Stoxx 50
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Amount: | $20,550,790
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Maturity: | Feb. 3, 2021
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Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier on observation date
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Price: | Par of $10
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Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly observation date after six months
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Payout at maturity: | Par plus any coupon unless index closes below downside threshold level, in which case will lose 1% for each 1% decline of the worse performing index from initial level
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Initial levels: | 143.05 for Stoxx Banks, 3,643.04 for Stoxx 50
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Coupon barriers/thresholds: | 92.98 for Stoxx Banks, 2,367.98 for Stox 50, 65% of initial levels
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Pricing date: | Jan. 29
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Settlement date: | Jan. 31
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40435J422
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