Published on 8/7/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC USA Inc. prices $2.54 million 5.75% worst-of autocallables tied to index, fund
By Susanna Moon
Chicago, Aug. 7 – HSBC USA Inc. priced $2.54 million of 5.75% worst-of fixed-coupon autocallable securities due Nov. 9, 2015 linked to the Russell 2000 index and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par if each component closes at or above their initial prices on any quarterly call date beginning Nov. 5.
The payout at maturity will be par unless either component finishes below its 80% buffer level, in investors will lose 1.25% for each 1% decline of the worse performing component beyond 20%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Worst-of fixed-coupon autocallable securities
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Underlying components: | Russell 2000 index and iShares MSCI EAFE ETF
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Amount: | $2,542,000
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Maturity: | Nov. 9, 2015
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Coupon: | 5.75%, payable quarterly
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Price: | Par
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Payout at maturity: | Par unless either component finishes below buffer level, in which case 1.25% loss per 1% drop of worse performing component beyond 20%
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Call: | At par if both components close at or above initial levels on any quarterly call date beginning Nov. 5
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Initial levels: | 1,124.82 for Russell, $66.44 for MSCI EAFE
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Buffer levels: | 80% of initial share prices
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Pricing date: | Aug. 4
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Settlement date: | Aug. 7
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1%
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Cusip: | 40433BKX5
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