Published on 7/5/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.09 million 10.55% contingent income autocalls tied to stocks
By Susanna Moon
Chicago, July 5 – HSBC USA Inc. priced $1.09 million of autocallable contingent income barrier notes due June 29, 2021 linked to the least performing of the common stocks of AbbVie Inc., Netflix, Inc. and JPMorgan Chase & Co., according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of at least 10.55% if each stock closes at or above its 50% coupon barrier on the observation date for that month.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date after six months.
The payout at maturity will be par unless any stock finishes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worst performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stock: | AbbVie Inc. (Symbol: ), Netflix, Inc. (Symbol: | ) and JPMorgan Chase & Co. (Symbol: )
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| Amount: | $1,092,000
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| Maturity: | April 27, 2020
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| Coupon: | 10.55%, payable monthly if each stock closes at or above 50% coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below 50% trigger, in which case 1% loss per 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above initial level on any determination date beginning Dec. 26, 2018
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| Initial level: | $92.12 for AbbVie, $399.39 for Netflix and $104.86 for JPMorgan
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| Trigger levels: | $46.06 for AbbVie, $199.695 for Netflix and $52.43 for JPMorgan, 50% of initial levels
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| Pricing date: | June 26
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| Settlement date: | June 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.35%
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| Cusip: | 40435FG84
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