Published on 6/28/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $955,000 autocallable barrier notes tied to S&P 500, Euro Stoxx 50
By Wendy Van Sickle
Columbus, Ohio, June 28 – HSBC USA Inc. priced $955,000 of autocallable barrier notes with contingent return due Dec. 28, 2018 linked to the lesser performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.25% if each index closes at or above its coupon trigger, 75% of the initial level, on a quarterly observation date.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date after one year.
The payout at maturity will be par plus the contingent coupon, if any, unless either index return is negative and either index finishes below its 75% barrier level on any day during the observation period, in which case investors will be fully exposed to any losses of the lesser-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying indexes: | S&P 500 index, Euro Stoxx 50 index
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| Amount: | $955,000
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| Maturity: | Dec. 28, 2018
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| Coupon: | 7.25% annualized, payable each quarter that each index closes at or above its barrier level on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless either index finishes below initial level and either index ever closes below trigger level during life of notes, in which case 1% loss for each 1% decline of lesser performing index from initial level
|
| Call: | At par if each index closes at or above initial level on any quarterly date after one year
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| Initial levels: | 2,438.30 for S&P 500, 3,543.68 for Euro Stoxx 50
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| Trigger/barrier levels: | 1,828.725 for S&P, 2,657.76 for Stoxx; 75% of initial levels
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| Pricing date: | June 23
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| Settlement date: | June 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40433U7L4
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