Published on 2/14/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.1 million 7.5% contingent rate callables on three indexes
By Susanna Moon
Chicago, Feb. 14 – HSBC USA Inc. priced $4.1 million of contingent income callable securities due Aug. 5, 2020 linked to the least performing of the Russell 2000 index, the Euro Stoxx 50 index and the S&P 500 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 7.5% if each index closes at or above its 65% coupon barrier on each day during that quarter.
The notes are callable at par on any quarterly determination date.
The payout at maturity will be par unless any index finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $4,097,000
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| Maturity: | Aug. 5, 2020
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| Coupon: | 7.5% annualized, payable quarterly if each index closes at or above 65% coupon barrier on each day during that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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| Call option: | At par on any quarterly determination date
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| Initial levels: | 1,574.982 for Russell, 3,609.29 for Stoxx and 2,823.81 for S&P
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| Trigger levels: | 1,023.7383 for Russell, 2,346.0385 for Stoxx and 1,835.4765 for S&P; 65% of initial levels
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| Pricing date: | Jan. 31
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| Settlement date: | Feb. 5
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.5%
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| Cusip: | 40435FTH0
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