Published on 11/8/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.14 million buffered autocallables tied to index, fund
By Susanna Moon
Chicago, Nov. 8 – HSBC USA Inc. priced $6.14 million of autocallable yield notes due May 3, 2019 linked to the lesser 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 annual call premium of 9.5% if each component closes at or above its initial level on any semiannual review date.
The payout at maturity will be par unless either underlying component closes below its 80% barrier level, in which case investors will lose 1.25% for each 1% decline of the worse performing index or fund.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Buffered autocallable yield notes
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Underlying assets: | Russell 2000 index, iShares MSCI EAFE ETF
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Amount: | $6,135,000
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Maturity: | May 3, 2019
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Coupon: | 0%
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Price: | Par
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Call: | At par plus 9.5% annualized if each index closes above initial level on semiannual observation date
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Payout at maturity: | Par plus coupon unless either asset falls by more than 20%, in which case 1.25% loss per 1% decline of worse performing index or fund
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Initial levels: | 1,502.773 for Russell, $69.63 for fund
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Barrier levels: | 1,202.2184 for Russell, $55.704 for fund; 80% of initial levels
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Pricing date: | Oct. 31
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Settlement date: | Nov. 3
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40435FLK1
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