Published on 7/10/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.2 million buffered autocallables with rebate return linked to Russell, EAFE ETF
By Angela McDaniels
Tacoma, Wash., July 10 – HSBC USA Inc. priced $5.2 million of buffered autocallable yield notes with rebate return due Jan. 11, 2019 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 Jan. 8, 2018, July 6, 2018 or Jan. 8, 2019, the notes will be automatically called at par plus an annualized call premium of 9%.
If the notes are not called and the final return of the lesser-performing underlier is greater than or equal to negative 20%, the payout at maturity will be par plus 5.25%. 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.
|
| Issue: | Buffered autocallable yield notes with rebate return
|
| Underliers: | Russell 2000, iShares MSCI EAFE ETF
|
| Amount: | $5,202,000
|
| Maturity: | Jan. 11, 2019
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If notes are not called and final return of lesser-performing underlier is greater than or equal to negative 20%, par plus 5.25%; otherwise, 1.25% loss for every 1% that lesser-performing underlier declines beyond 20%
|
| Call: | Automatically at par plus annualized call premium of 9% if each underlier closes at or above initial level on Jan. 8, 2018, July 6, 2018 or Jan. 8, 2019
|
| Initial levels: | 1,400.815 for index and $64.83 for ETF
|
| Buffer levels: | 1,120.652 for index and $51.864 for ETF, 80% of initial levels
|
| Pricing date: | July 6
|
| Settlement date: | July 11
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.05%
|
| Cusip: | 40435FCE5
|
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