Published on 10/2/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.37 million contingent income barrier autocallables linked to stocks
By Wendy Van Sickle
Columbus, Ohio, Oct. 2 – HSBC USA Inc. priced $1.37 million of autocallable contingent income barrier notes due Sept. 28, 2021 linked to the least performing of the common stocks of Alphabet, Inc., AT&T Inc., Netflix Inc. and Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 11.25% if each stock closes at or above its trigger level, 55% of its initial share price, on the observation date for that period.
The notes will be called at par plus coupon if each stock closes above 95% of initial level on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Alphabet, Inc., AT&T Inc., Netflix Inc. and Starbucks Corp.
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| Amount: | $1,366,000
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| Maturity: | Sept. 28, 2021
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| Coupon: | 11.25%, payable monthly if each stock closes at or above trigger level on determination date for that period
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| Price: | Par
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| Call: | At par plus coupon if each stock closes above 95% of initial level on any quarterly call observation date after six months
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, number of shares of the worst-performing stock equal to $1,000 divided by initial share price
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| Initial level: | $1,184.65 for Alphabet, $33.76 for AT&T, $369.43 for Netflix, $59.60 for Starbucks
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| Trigger/barrier level: | $651.5575 for Alphabet, $18.568 for AT&T, $203.1865 for Netflix, $31.295 for Starbucks, 55% of initial price
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.35%
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| Cusip: | 40435F3L9
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