Published on 11/20/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.33 million autocallable contingent income barrier notes on stocks
By Wendy Van Sickle
Columbus, Ohio, Nov. 20 – HSBC USA Inc. priced $2.33 million of autocallable contingent income barrier notes due Nov. 20, 2019 linked to the common stocks of Bank of America Corp., Caterpillar Inc. and Johnson & Johnson, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 12% if each stock closes at or above the coupon trigger level, 70% of the initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above the initial price on any quarterly observation date.
If the notes are not called and each stock finishes at or above the 70% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing stock from its initial level.
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: | Bank of America Corp., Johnson & Johnson and Caterpillar Inc.
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| Amount: | $2,325,000
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| Maturity: | Nov. 20, 2019
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| Coupon: | 12%, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each finishes at or above 70% barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly observation date
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| Initial levels: | $26.79 for Bank of America and $134.10 for Caterpillar, $139.10 for Johnson & Johnson
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| Coupon trigger levels: | $18.753 for Bank of America, $93.87 for Caterpillar for and $97.37 Johnson & Johnson, 70% of initial prices
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| Barrier levels: | $18.753 for Bank of America, $93.87 for Caterpillar for and $97.37 Johnson & Johnson, 70% of initial prices
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| Pricing date: | Nov. 15
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| Settlement date: | Nov. 20
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435H178
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