Published on 8/21/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.32 million autocallable barrier notes on two ETFs
By Wendy Van Sickle
Columbus Ohio, Aug. 21 – HSBC USA Inc. priced $1.32 million of 0% autocallable barrier notes due May 17, 2022 linked to the SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 10.25% a year if each underlying closes at or above its initial level on any monthly observation date after six months.
The payout at maturity will be par unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes
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Underlying assets: | SPDR S&P Biotech ETF and Technology Select Sector SPDR fund
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Amount: | $1,316,000
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Maturity: | May 17, 2022
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worst performer
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Call: | Automatically at par plus a call premium of 10.25% a year if each underlying closes at or above its initial level on any monthly observation date after six months
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Initial levels: | $94.89 for Biotech, $73.38 for Technology
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Coupon barriers/triggers: | $66.423 for Biotech, $51.366 for Technology; 70% of initial levels
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Pricing date: | Aug. 14
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Settlement date: | Aug. 17
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40435FW86
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