Published on 6/22/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $13.54 million autocallable contingent income barrier notes on stocks
By Wendy Van Sickle
Columbus, Ohio, June 22 – HSBC USA Inc. priced $13.54 million of autocallable contingent income barrier notes due June 25, 2019 linked to the lesser performing of the iShares Nasdaq Biotechnology ETF, the Financial Select Sector SPDR Fund and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at a rate of 10.05% per year if each fund closes at or above its trigger level, 75% of its initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each fund closes at or above its initial share price on any coupon observation date.
The payout at maturity will be par plus the final coupon unless any fund finishes below its trigger level, in which case investors will be fully exposed to the decline of the least performing fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | iShares Nasdaq Biotechnology ETF, Financial Select Sector SPDR Fund and Technology Select Sector SPDR Fund
|
| Amount: | $13,538,000
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| Maturity: | June 25, 2019
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| Coupon: | 10.05%, payable each quarter that each stock closes at or above trigger level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each fund finishes at or above trigger level, par; otherwise, full exposure to loss of least performing fund
|
| Call: | At par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date
|
| Initial levels: | $303.59 for biotech, $24.33 for Financial Select, $55.62 for Technology Select
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| Trigger levels: | $227.6925 for biotech, $18.2475 for Financial Select, $41.7150 for Technology Select; 75% of initial prices
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| Pricing date: | June 20
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| Settlement date: | June 23
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
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| Cusip: | 40435FAD9
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