Published on 11/14/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.78 million buffered autocallables with rebate return on Russell, ETF
By Marisa Wong
Morgantown, W.Va., Nov. 14 – HSBC USA Inc. priced $5.78 million of buffered autocallable yield notes with rebate return due May 16, 2018 linked to the worse performing of the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If each underlier closes at or above its initial level on May 11, 2017, Nov. 13, 2017 or May 11, 2018, the notes will be automatically called at par plus an annualized call premium of 10%.
If the notes are not called and the final return of the lesser-performing underlier is less than zero but greater than or equal to negative 20%, the payout at maturity will be par plus 7.5%. Otherwise, investors will lose 1.25% for every 1% that the lesser-performing underlier declines beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Buffered autocallable yield notes with rebate return
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| Underliers: | Russell 2000, iShares MSCI EAFE ETF
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| Amount: | $5,777,000
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| Maturity: | May 16, 2018
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If final return of lesser-performing underlier is less than zero but greater than or equal to negative 20%, par plus 7.5%; otherwise, 1.25% loss for every 1% that lesser-performing underlier declines beyond 20%
|
| Call: | Automatically at par plus annualized call premium of 10% if each underlier closes at or above initial level on May 11, 2017, Nov. 13, 2017 or May 11, 2018
|
| Initial levels: | 1,251.608 for index and $57.40 for ETF
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| Buffer level: | 1,001.2864 for index and $45.92 for ETF, 80% of initial levels
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| Pricing date: | Nov. 10
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| Settlement date: | Nov. 16
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.05%
|
| Cusip: | 40433UA22
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