Published on 11/2/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $951,000 contingent coupon autocalls tied to Russell, Stoxx
By Sarah Lizee
Olympia, Wash., Nov. 2 – HSBC USA Inc. priced $951,000 of market-linked securities due Oct. 29, 2025 – autocallable with contingent coupon and contingent downside linked to the lesser performing of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6.5% if each index closes at or above its 60% coupon threshold on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date after one year.
The payout at maturity will be par unless either index finishes below its 60% downside threshold, in which case the payout will be par plus the return of the worse performing index with full exposure to any losses.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Market-linked securities – autocallable with contingent coupon and contingent downside
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50
|
| Amount: | $951,000
|
| Maturity: | Oct. 29, 2025
|
| Coupon: | 6.5%, payable quarterly if each index closes above coupon barrier
|
| Price: | Par
|
| Payout at maturity: | Par plus any contingent coupon unless any index finishes below trigger level, in which case full exposure to any losses of the worst performing index
|
| Call: | At par if each index closes at or above its initial level on any quarterly observation date after one year
|
| Initial levels: | 1,506.637 for Russell, 3,147.13 for Stoxx
|
| Coupon barrier: | 903.9822 for Russell, 1,888.278 for Stoxx; 60% of initial levels
|
| Downside threshold: | 903.9822 for Russell, 1,888.278 for Stoxx; 60% of initial levels
|
| Pricing date: | Oct. 30
|
| Settlement date: | Nov. 2
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.775%
|
| Cusip: | 40435F3Q8
|
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