Published on 8/1/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.37 million autocallable contingent income barrier notes on tech stocks
New York, Aug. 1 – HSBC USA Inc. priced $3.37 million of autocallable contingent income barrier notes due Aug. 2, 2021 linked to the class A common stock of Facebook, Inc., the common stock of Amazon.com, Inc., the class A common stock of Alphabet, Inc. and the common stock of Apple, 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 10% if each stock closes at or above its coupon trigger level, 60% of the initial level, 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 call observation date after six months.
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 level.
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: | Class A common stock of Facebook, Inc. (Nasdaq: FB), common stock of Amazon.com, Inc. (Nasdaq: AMZN), class A common stock of Alphabet, Inc. (Nasdaq: GOOGL) and common stock of Apple, Inc. (Nasdaq: AAPL)
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| Amount: | $3,366,000
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| Maturity: | Aug. 2, 2021
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| Coupon: | 10%, 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 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 level
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| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after six months
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| Initial levels: | $174.89 for Facebook, $1,817.27 for Amazon, $1,252.89 for Alphabet and $190.98 for Apple
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| Coupon trigger levels: | $104.934 for Facebook, $1,090.362 for Amazon, $751.734 for Alphabet and $114.588 for Apple; 60% of initial prices
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| Barrier levels: | $104.934 for Facebook, $1,090.362 for Amazon, $751.734 for Alphabet and $114.588 for Apple; 60% of initial prices
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| Pricing date: | July 27
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| Settlement date: | July 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40435FV20
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