Published on 8/11/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.66 million trigger autocallables linked to Vodafone
By Angela McDaniels
Tacoma, Wash., Aug. 11 – HSBC USA Inc. priced $6.66 million of 0% trigger autocallable optimization securities due Aug. 13, 2020 linked to the American Depositary Shares of Vodafone Group plc, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning Aug. 12, 2016, the notes will be called at par of $10 plus a call return of 10% per year if Vodafone ADSs close at or above the initial ADS price on any quarterly observation date.
If the notes are not called and Vodafone ADSs finish at or above the trigger price, 65.5% of the initial ADS price, the payout at maturity will be par. Otherwise, investors will be exposed to the ADS price decline from the initial price.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable optimization securities
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Underlying stock: | Vodafone Group plc (Symbol: VOD)
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Amount: | $6,659,500
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Maturity: | Aug. 13, 2020
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If notes are not called and Vodafone ADSs finish at or above trigger price, par; otherwise, investors will be exposed to ADS price decline from initial price
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Call: | Beginning Aug. 12, 2016, notes will be called at par plus 10% per year if Vodafone ADSs close at or above initial ADS price on any quarterly observation date
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Initial ADS price: $37.71
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Trigger price: | $24.70, 65.5% of initial ADS price
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Pricing date: | Aug. 7
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Settlement date: | Aug. 12
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Underwriter: | HSBC Securities (USA) Inc.
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Agent: | UBS Financial Services Inc.
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Fees: | 2.5%
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Cusip: | 40434E531
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