Published on 6/7/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.01 million autocallable securities on S&P, Russell, Stoxx
By Wendy Van Sickle
Columbus, Ohio, June 7 – HSBC USA Inc. priced $2.01 million of 0% autocallable due June 3, 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.
If each index closes at or above its initial level on any quarterly call date after one year, the notes will be called at par plus an annualized premium of 14.75%.
The payout at maturity will be par plus 44.25% if each index finishes at or above its initial level. If any index declines but note below the 85% downside threshold level, the payout will be par. 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 with Morgan Stanley Wealth Management as a dealer.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable securities
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| Underlying indexes: | S&P 500, Russell 2000, Euro Stoxx 50
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| Amount: | $2.01 million
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| Maturity: | June 3, 2021
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| Coupon: | 0%
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| Price: | Par
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| Call: | Automatically at par plus annualized premium of 14.75% if each index closes at or above initial level on any quarterly call date after one year
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| Payout at maturity: | Par plus 44.25% if each index finishes at or above its initial level; par if any index falls by up to 15%; otherwise, full exposure to loss of least performing index
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| Initial levels: | 2,705.27 for S&P, 1,633.609 for Russell, 3,406.65 for Stoxx
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| Downside thresholds: | 2,299.48 for S&P, 1,388.568 for Russell, 2,895.65 for Stoxx, 85% of initial levels
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| Pricing date: | May 31
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| Settlement date: | June 5
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as a dealer
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| Fees: | 3%
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| Cusip: | 40435M136
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