Published on 5/10/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.17 million autocallable contingent income barrier notes on three stocks
By Wendy Van Sickle
Columbus, Ohio, May 10 – HSBC USA Inc. priced $1.17million of autocallable contingent income barrier notes due May 9, 2022 linked to the common stocks of Alibaba Group Holding Ltd., Bank of America Corp. and Procter & Gamble Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10.75% if each stock closes at or above the coupon trigger level, 60% 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 call observation date after six months.
If the notes are not called and each stock finishes at or above the 60% 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: | Alibaba Group Holding Ltd., Bank of America Corp. and Procter & Gamble Co.
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| Amount: | $1,173,000
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| Maturity: | May 9, 2022
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| Coupon: | 10.75%, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
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| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after six months
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| Initial levels: | $188.89 for Alibaba, $29.30 for BofA and $72.43 for Procter & Gamble
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| Coupon trigger levels: | $113.334 for Alibaba, $17.58 for BofA and $43.458 for Procter & Gamble, 60% of initial prices
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| Barrier levels: | $113.334 for Alibaba, $17.58 for BofA and $43.458 for Procter & Gamble, 60% of initial prices
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| Pricing date: | May 4
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| Settlement date: | May 9
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40435FZY6
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