Published on 12/19/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.96 million buffered autocallable yield notes tied to index, ETF
By Wendy Van Sickle
Columbus, Ohio, Dec. 19 – HSBC USA Inc. priced $6.96 million of 0% buffered autocallable yield notes with rebate return due June 19, 2019 linked to the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to a 414B2 filing with the Securities and Exchange Commission.
The notes will be called semiannually at par plus a 10.25% annualized premium if each asset closes above its initial level on the observation date for that period.
If the notes are not called, the payout at maturity will be par unless either asset drops by more than 20% in which case investors will lose 1.25% for each 1% the lesser performing asset declines beyond 20%.
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 200 index and iShares MSCI EAFE exchange-traded fund
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Amount: | $6,959,000
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Maturity: | June 19, 2019
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Coupon: | 0%
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Price: | Par
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Call: | At par plus annualized premium of 10.25% if each asset closes above initial level on a semiannual observation date
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Payout at maturity: | Par unless either asset falls by more than 20%, in which case 1.25% loss for each 1% decline of lesser performing asset beyond 20%
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Initial levels: | 1,506.95 for index, $69.99 for ETF
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Buffer values: | 1,205.56 for index, $55.992 for ETF; 80% of initial levels
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Pricing date: | Dec. 14
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Settlement date: | Dec. 19
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.05%
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Cusip: | 40435FPH4
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