Published on 12/23/2015 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.14 million contingent return autocallable notes on S&P, oil ETF
By Tali Rackner
Norfolk, Va., Dec. 23 – HSBC USA Inc. priced $2.14 million of 0% autocallable notes with contingent return due Dec. 30, 2019 linked to the S&P 500 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized call premium of 18.5% if each component closes at or above the initial level on any annual call date.
The payout at maturity will be par plus a 10% contingent return payment unless either component finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing component.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable notes with contingent return
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| Underliers: | S&P 500 index, SPDR S&P Oil & Gas Exploration and Production ETF
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| Amount: | $2,144,000
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| Maturity: | Dec. 30, 2019
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| Coupon: | 0%
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus a 10% contingent return payment unless either underlier finishes below its trigger level, in which case investors will be fully exposed to any losses of the worst performing component
|
| Call: | At par plus an annualized call premium of 18.5% if each component closes at or above the initial level on any annual call date
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| Observation dates: | Dec. 22, 2016, Dec. 22, 2017, Dec. 24, 2018 and Dec. 24, 2019
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| Initial levels: | 2,005.55 for S&P 500, $28.94 for ETF
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| Trigger levels: | 1,403.89 for S&P 500, $20.26 for ETF; 70% of initial levels
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| Pricing date: | Dec. 18
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| Settlement date: | Dec. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.15%
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| Cusip: | 40433UDS2
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