Published on 9/22/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.56 million contingent yield trigger autocallables tied to two indexes
By Susanna Moon
Chicago, Sept. 22 – HSBC USA Inc. priced $4.56 million of trigger autocallable contingent yield notes due Sept. 21, 2020 linked to the least performing of the Russell 2000 index and the FTSE 100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 6.3% if each index closes at or above its 70% coupon barrier on the determination date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly determination date after six months.
The payout at maturity will be par plus the final coupon unless any index finishes below its 70% downside threshold, in which case investors will be fully exposed to the decline of the worst performing index.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000, FTSE 100
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| Amount: | $4,562,000
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| Maturity: | Sept. 21, 2020
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| Coupon: | 6.3% per year, payable quarterly if each index closes at or above 70% coupon barrier on determination date that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, full exposure to decline of worst performing index
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| Call: | At par if each index closes at or above its initial level on each quarterly observation date beginning March 15, 2018
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| Initial levels: | 1,431.712 for Russell, 7,215.47 for FTSE
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| Downside thresholds: | 1,002.198 for Russell, 5,050.83 for FTSE; 70% of initial levels
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435G261
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