Published on 10/4/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.45 million autocallable yield notes linked to stocks
By Angela McDaniels
Tacoma, Wash., Oct. 4 – HSBC USA Inc. priced $2.45 million of 10% autocallable yield notes due Oct. 9, 2018 linked to the least performing of the common stocks of Bank of America Corp., Citigroup Inc. and Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par if each stock closes at or above its initial share price on any quarterly call observation date.
The payout at maturity will be par unless any stock finishes below its trigger level, 80% of its initial share price, in which case the payout will be a number of shares of the least-performing stock equal to $1,000 divided by its initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
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| Underlying stocks: | Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NSYE: C) and Goldman Sachs Group, Inc. (NYSE: GS)
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| Amount: | $2.45 million
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| Maturity: | Oct. 9, 2018
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| Coupon: | 10%, payable quarterly
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below trigger level, in which case number of shares of least-performing stock equal to $1,000 divided by initial share price or, at issuer’s option, amount in cash equal to value of those shares
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| Call: | Automatically at par if each stock closes at or above initial share price on any quarterly call observation date
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| Initial share prices: | $25.86 for Bank of America, $74.13 for Citigroup and $241.62 for Goldman Sachs
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| Trigger prices: | $20.69 for Bank of America, $59.30 for Citigroup and $193.30 for Goldman Sachs; 80% of initial share prices
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| Pricing date: | Oct. 3
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| Settlement date: | Oct. 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40435G139
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