Published on 6/29/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.9 million buffered autocallables with rebate return on fund, index
By Susanna Moon
Chicago, June 29 – HSBC USA Inc. priced $1.9 million of buffered autocallable yield notes with rebate return due Dec. 13, 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.
The notes will be called at par plus an annualized call premium of 9% unless underlying component closes at or above its initial level on any semiannual review date beginning Dec. 8, 2017.
The payout at maturity will be par plus 7% unless either component finishes below its 80% barrier level, in which case investors will lose 1.25% for each 1% decline of the worse performing component 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: | $1,903,000
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Maturity: | Dec. 13, 2018
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If either component finishes at or above 80% barrier, par plus 7%; otherwise, 1.25% loss per 1% decline of worse performing component beyond 20%
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Call: | At par plus annualized call premium of 9% if each underlier closes at or above initial level on Dec. 8, 2017, June 13, 2018 or Dec. 13, 2018
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Initial levels: | 1,415.612 for index and $66.56 for fund
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Barrier level: | 1,132.4896 for index and $53.248 for fund, 80% of initial levels
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Pricing date: | June 8
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Settlement date: | June 13
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.05%
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Cusip: | 40433U7K6
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