Published on 6/7/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $250,000 6% contingent return autocalls tied to Russell, S&P 500
By Susanna Moon
Chicago, June 7 – HSBC USA Inc. priced $250,000 of autocallable barrier notes with contingent return due May 31, 2028 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 6% if each underlying index closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any review date after one year.
The payout at maturity will be par unless either index finishes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying assets: | Russell 2000 index and S&P 500 index
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| Amount: | $250,000
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| Maturity: | May 31, 2028
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| Coupon: | 6% annualized, payable quarterly if each index closes at or above its 75% coupon barrier on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either asset falls below 50% trigger, in which case full exposure to any losses of worse performing index
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| Call: | At par if each index closes at or above its initial level on any review date beginning May 28, 2019
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| Initial levels: | 1,626.928 for Russell and 2,721.33 for S&P
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| Coupon barriers: | 1,220.196 for Russell and 2,041 for S&P, 75% of initial levels
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| Trigger levels: | 813.464 for Russell and 1,360.665 for S&P, 50% of initial levels
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| Pricing date: | May 25
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| Settlement date: | May 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40435FA31
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