Published on 9/27/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.09 million autocallable barrier notes on Stoxx, EM ETF
By Wendy Van Sickle
Columbus, Ohio, Sept. 27 – HSBC USA Inc. priced $1.09 million of autocallable barrier notes with contingent return and step-down call threshold feature due Oct. 14, 2022 linked to the Euro Stoxx 50 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 13.5% per year if each underlying closes at or above its call level on any observation date. The observation dates are Oct. 4, 2019, Oct. 8, 2020, Oct. 7, 2021 and Oct. 6, 2022.
The call level will be 100% of the initial level on the first observation date, 97.5% on the second, 95% on the third and 92.5% on the fourth.
The payout at maturity will be par plus a contingent payment of 10% 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.
|
| Issue: | Autocallable barrier notes with contingent return and step-down call threshold feature
|
| Underlying assets: | Euro Stoxx 50 index and iShares MSCI Emerging Markets exchange-traded fund
|
| Amount: | $1.09 million
|
| Maturity: | Oct. 14, 2022
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 10% unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer
|
| Call: | Automatically at par plus 13.5% per year if each underlying closes at or above call level on an observation date; observation dates are Oct. 4, 2019, Oct. 8, 2020, Oct. 7, 2021 and Oct. 6, 2022
|
| Call levels: | 100% of initial level on first observation date, 97.5% on second, 95% on third, 92.5% on fourth
|
| Initial levels: | 3,403.81 for Stoxx, $43.23 for EM ETF
|
| Trigger values: | 2,401.567 for Stoxx and $30.261 for EM ETF; 70% of initial levels
|
| Pricing date: | Sept. 21
|
| Settlement date: | Sept. 28
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 0%
|
| Cusip: | 40435FY76
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
