Published on 10/31/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $961,000 contingent return autocalls tied to Stoxx, EM fund
By Susanna Moon
Chicago, Oct. 31 – HSBC USA Inc. priced $961,000 of autocallable barrier notes with contingent return and step down call due Nov. 10, 2022 linked to the lesser performing of the Euro Stoxx 50 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annual call premium of 15.5% if each asset closes at or above its call level on any annual review date. The call level will be 100% of the initial level for the first observation date, stepping down by 2.5% on each subsequent review date.
If the notes are not called, the payout at maturity will be par plus 10% unless either component finishes below its 70% threshold, in which case investors will be fully exposed to any losses of the worse performing index or fund.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return and step down call
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| Underlying assets: | Euro Stoxx 50 index and iShares MSCI Emerging Markets ETF
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| Amount: | $961,000
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| Maturity: | Nov. 10, 2022
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 10% unless either asset falls below 70% trigger, in which case full exposure to any losses of worse performing index or fund
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| Call: | At par plus 15.5% per year if each asset closes at or above its call level on any annual review date beginning Nov. 6, 2019; call level will initially be 100% of initial level, stepping down to 97.5% for the second review date, to 95% for the third review date and to 92.5% for final review date
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| Initial levels: | 3,210.82 for Stoxx and $39.67 for fund
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| Trigger levels: | 2,247.574 for Stoxx and $27.769 for fund, 70% of initial levels
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| Pricing date: | Oct. 19
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| Settlement date: | Oct. 26
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435F3S4 / US40435F3S47
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