Published on 5/3/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.75 million contingent income autocallables on three indexes
By Wendy Van Sickle
Columbus, Ohio, May 3 – HSBC USA Inc. priced $1.75 million of contingent income autocallable securities due May 4, 2023 linked to the worst performing of the Euro Stoxx 50 index, the Nikkei 225 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon of 10.7% a year if each index closes at or above its coupon barrier level, 75% of its initial index level, on the determination date for that quarter.
The notes will be automatically called at par of $10 plus the contingent coupon if each index closes at or above its initial index level on any quarterly determination date other than the final one.
If each index finishes at or above its downside threshold level, 55% of its initial index level, the payout at maturity will be par plus the final contingent coupon, if applicable. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Russell 2000, Euro Stoxx 50 and Nikkei 225
|
| Amount: | $1,753,550
|
| Maturity: | May 4, 2023
|
| Coupon: | 10.7%, payable quarterly if each index closes above coupon barrier
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon, if applicable, unless any index finishes below its 55% trigger level, in which case 1% loss for every 1% that worst-performing index finishes below initial level
|
| Call: | Automatically at par if indexes close at or above their initial levels on any quarterly determination date other than the final one
|
| Initial index levels: | 16,666.05 for Nikkei, 3,125.43 for Euro Stoxx, 1,140.398 for Russell
|
| Coupon barrier: | 75% of initial levels
|
| Downside threshold: | 55% of initial levels
|
| Pricing date: | April 28
|
| Settlement date: | May 5
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 3.5%
|
| Cusip: | 40434N366
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
