By Sarah Lizee
Olympia, Wash., Feb. 6 – HSBC USA Inc. priced $10.68 million of trigger autocallable contingent yield notes due Jan. 31, 2025 linked to the lesser performing of the iShares Russell 2000 ETF and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6.55% if each ETF closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that quarter.
After one year, the notes will be called at par if each ETF closes at or above its initial level on any quarterly observation date other than the final one.
The payout at maturity will be par unless either ETF finishes below the 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing ETF.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying ETFs: | iShares Russell 2000 ETF and iShares MSCI Emerging Markets ETF
|
| Amount: | $10,683,960
|
| Maturity: | Jan. 31, 2025
|
| Coupon: | 6.55%, payable quarterly if each ETF closes at or above coupon barrier on observation date
|
| Price: | Par
|
| Call: | After one year, at par plus contingent coupon if all ETFs close at or above initial levels on any quarterly observation date other than the final one
|
| Payout at maturity: | Par unless either ETF closes below downside threshold, in which case 1% loss for each 1% decline of worst performing ETF
|
| Initial levels: | $163.93 for iShares Russell, $43.63 for EM
|
| Coupon barriers: | $114.75 for iShares Russell, $30.54 for EM; 70% of initial levels
|
| Downside thresholds: | $114.75 for iShares Russell, $30.54 for EM; 70% of initial levels
|
| Pricing date: | Jan. 29
|
| Settlement date: | Jan. 31
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40438B160
|
|
|
© 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.
