Published on 3/25/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.6 million autocallable yield notes tied to four indexes
By Jennifer Chiou
New York, March 25 – HSBC USA Inc. priced $2.6 million of autocallable yield notes due April 8, 2020 linked to the S&P 500 index, the Russell 2000 index, the Euro Stoxx 50 index and the Nikkei 225 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay interest at a floating rate equal to Libor plus 500 basis points, subject to a floor of 0%. Interest is payable quarterly.
Beginning on April 8, 2016, the notes will be called at par if each index closes at or above its initial level on any annual call observation date.
The payout at maturity will be par unless any index finishes below its trigger level, 70% of its initial level, in which case investors will lose 1% for every 1% that the worst-performing index finishes below its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable yield notes
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| Underlying indexes: | S&P 500, Russell 2000, Euro Stoxx 50, Nikkei 225
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| Amount: | $2.6 million
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| Maturity: | April 8, 2020
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| Coupon: | Libor plus 500 bps, with floor of 0%; payable quarterly
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| Price: | Par
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| Payout at maturity: | Par unless any index closes below 70% trigger level, in which case 1% loss for every 1% that worst-performing index finishes below initial level
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| Call: | Automatically at par if both indexes close at or above their initial levels on any annual call observation date beginning on April 8, 2016
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| Initial index levels: | 2,091.50 for S&P 500, 1,263.463 for Russell 2000, 3,731.35 for Euro Stoxx 50, 19,713.45 for Nikkei 225
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| Pricing date: | March 24
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| Settlement date: | April 8
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40433BJ82
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