Published on 10/8/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.04 million autocallable yield notes tied to four stocks
By Sarah Lizee
Olympia, Wash., Oct. 8 – HSBC USA Inc. priced $1.04 million of autocallable yield notes due Oct. 9, 2019 linked to the worst performing of the common stocks of Facebook, Inc., Apple Inc., Alphabet Inc. and Netflix, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annual rate of 11%.
The notes will be called at par if each stock closes at or above its initial price on any quarterly observation date beginning Jan. 4, 2019.
The payout at maturity will be par unless any stock finishes below its trigger level, 60% of the initial price, in which case investors will be exposed to any decline of the least performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable yield notes
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| Underlying stocks: | Facebook, Inc., Apple Inc., Alphabet Inc. and Netflix, Inc.
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| Amount: | $1.04 million
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| Maturity: | Oct. 9, 2019
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| Coupon: | 11% per year, payable quarterly
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below trigger level, in which case investors will be exposed to any decline of the least performing stock
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| Call: | Automatically if each stock closes at or above initial level on any quarterly observation date beginning Jan. 4, 2019
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| Initial prices: | $162.43 for Facebook, $232.07 for Apple, $1,211.53 for Alphabet and $377.05 for Netflix
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| Trigger levels: | $97.458 for Facebook, $139.242 for Apple, $726.918 for Alphabet and $226.23 for Netflix, 60% of initial levels
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| Pricing date: | Oct. 3
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| Settlement date: | Oct. 9
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40435F3N5
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