Published on 7/5/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.75 million 8% callable contingent income barrier notes on Amazon
By Marisa Wong
Morgantown, W.Va., July 5 – HSBC USA Inc. priced $1.75 million of callable contingent income barrier notes due Sept. 26, 2019 linked to the common stock of Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at a rate of 8% per year if Amazon stock closes at or above the coupon trigger level, 75% of the initial share price, on the observation date for that quarter.
Starting Dec. 28, the notes are callable at par plus the contingent coupon on any coupon payment date.
The payout at maturity will be par plus the final coupon unless the stock closes below its 75% barrier price on any day during the life of the notes, in which case investors will be fully exposed to the decline in the stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
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| Underlying stock: | Amazon.com, Inc. (Symbol: AMZN)
|
| Amount: | $1,746,000
|
| Maturity: | Sept. 26, 2019
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| Coupon: | 8% per year, payable quarterly if Amazon stock closes at or above coupon trigger on related quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon unless stock closes below barrier price during life of notes; in which case full exposure to losses
|
| Call option: | At par plus contingent coupon on any coupon payment date starting Dec. 28
|
| Initial price: | $1,715.67
|
| Coupon trigger: | $1,286.7525, 75% of initial price
|
| Barrier price: | $1,286.7525, 75% of initial price
|
| Pricing date: | June 22
|
| Settlement date: | June 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40435FH34
|
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