Published on 12/26/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.52 million 9.6% contingent income barrier autocalls tied to tech stocks
By Susanna Moon
Chicago, Dec. 22 – HSBC USA Inc. priced $2.52 million of autocallable contingent income barrier notes due Dec. 28, 2020 linked to the lesser performing of the common stocks of Apple Inc., Amazon.com, Inc., Facebook, Inc. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 9.6% if each stock closes at or above the 60% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any review date after six months.
The payout at maturity will be par unless either stock finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worse performing stock.
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: | Apple Inc. (Symbol: AAPL), Amazon.com, Inc. (Symbol: AMZN), Facebook, Inc. (Symbol: FB), Alphabet Inc. (Symbol: GOOGL)
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| Amount: | $2,515,000
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| Maturity: | Dec. 28, 2020
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| Coupon: | 9.6%, payable quarterly if each stock closes at or above 60% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock falls below 60% trigger, in which case full exposure to any losses of worse performing stock
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| Call: | At par if each index closes at or above initial level on any quarterly review date beginning June 25, 2018
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| Initial levels: | $174.35 for Apple, $1,177.62 for Amazon, $177.89 for Facebook, $1,064.95 for Alphabet
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| Trigger levels: | $104.61 for Apple, $706.572 for Amazon, $106.734 for Facebook, $638.97 for Alphabet; 60% of initial levels
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| Pricing date: | Dec. 20
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| Settlement date: | Dec. 26
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.35%
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| Cusip: | 40435FPL5
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