Published on 2/6/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.48 million autocallable contingent income barrier notes on stocks
By Devika Patel
Knoxville, Tenn., Feb. 6 – HSBC USA Inc. priced $3.48 million of autocallable contingent income barrier notes due Jan. 29, 2021 linked to 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 9.25% if each stock closes at or above the coupon trigger level, 60% of the initial price, 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 observation date other than the final one beginning July 25.
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 price.
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) and Alphabet Inc. (Symbol: GOOG)
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| Amount: | $3,478,000
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| Maturity: | Jan. 29, 2021
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| Coupon: | 9.25%, 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 stock 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 price
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| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly observation date other than the final one beginning July 25
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| Initial prices: | $171.51 for Apple, $1,402.05 for Amazon, $190 for Facebook and $1,175.84 for Alphabet
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| Coupon trigger/barrier levels: | $102.906 for Apple, $841.23 for Amazon, $114 for Facebook and $705.504 for Alphabet, 60% of initial prices
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| Pricing date: | Jan. 26
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| Settlement date: | Jan. 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40435FRF6
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