Published on 4/12/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $918,000 contingent return callable notes on S&P, Russell
By Susanna Moon
Chicago, April 12 – HSBC USA Inc. priced $918,000 of callable notes with contingent return due April 13, 2021 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7% if each index closes at or above its 65% coupon trigger level on the observation date for that month.
The notes are callable on any quarterly review date after one year.
The payout at maturity will be par plus the contingent coupon unless either index finishes below its 65% barrier 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.
|
Issue: | Callable notes with contingent return
|
Underlying indexes: | S&P 500 and Russell 2000
|
Amount: | $918,000
|
Maturity: | April 13, 2021
|
Coupon: | 7%, payable monthly if each index closes at or above its 65% coupon trigger level on the observation date for that month
|
Price: | Par
|
Payout at maturity: | Par plus contingent coupon unless either index finishes below its barrier level, in which case full exposure to any losses of worse performing index
|
Call option: | At par on any quarterly call date beginning April 13, 2017
|
Initial levels: | 2,047.60 for S&P and 1,097.314 for Russell
|
Barrier levels: | 1,330.94 for S&P and 713.254 for Russell; 65% of initial levels
|
Pricing date: | April 8
|
Settlement date: | April 13
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 3.625%
|
Cusip: | 40433ULJ3
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.