Published on 4/4/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $867,000 autocallable growth barrier notes tied to S&P 500
By Marisa Wong
Morgantown, W.Va., April 4 – HSBC USA Inc. priced $867,000 of 0% autocallable growth barrier notes due April 1, 2019 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at 113.5% of par if the index’s closing level on March 29, 2017 is greater than 110% of the initial index level.
If the notes are not called and the index return is greater than zero, the payout at maturity will be par plus 135% of the index return. If the index return is less than or equal to zero but greater than or equal to negative 25%, the payout will be par. If the return is less than negative 25%, investors will suffer a loss proportionate to the index’s decline.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable growth barrier notes
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Underlying index: | S&P 500
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Amount: | $867,000
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Maturity: | April 1, 2019
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If index return is greater than zero, par plus 135% of index return; if index return is less than or equal to zero but greater than or equal to negative 25%, par; if return is less than negative 25%, full exposure to index’s decline
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Call: | Automatically at 113.5% of par if index’s closing level on March 29, 2017 is greater than 2,240.76 (110% of initial index level)
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Initial level: | 2,037.05
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Pricing date: | March 28
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Settlement date: | March 31
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | None
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Cusip: | 40433UJN7
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