Published on 4/26/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.36 million autocallable barrier notes linked to oil ETF, S&P 500
By Angela McDaniels
Tacoma, Wash., April 26 – HSBC USA Inc. priced $3.36 million of 0% autocallable barrier notes with contingent return due April 29, 2020 linked to the S&P 500 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus 16% per year if each underlier closes at or above its initial level on April 24, 2017, April 23, 2018, April 22, 2019 or April 24, 2020.
If the notes are not called and the final return of the least-performing underlier is less than zero but greater than or equal to negative 40%, the payout at maturity will be par plus 10%. Otherwise, investors will lose 1% for every 1% that the least-performing underlier’s final level is less than its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with contingent return
|
| Underliers: | S&P 500 index and SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $3,358,000
|
| Maturity: | April 29, 2020
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final return of least-performing underlier is less than zero but greater than or equal to negative 40%, par plus 10%; otherwise, 1% loss for every 1% that least-performing underlier’s final level is less than initial level
|
| Call: | Automatically at par plus 16% per year if each underlier closes at or above initial level on April 24, 2017, April 23, 2018, April 22, 2019 or April 24, 2020
|
| Initial level: | 2,091.58 for index and $35.37 for ETF
|
| Pricing date: | April 22
|
| Settlement date: | April 29
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 2.15%
|
| Cusip: | 40433UKB1
|
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