Published on 6/2/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.38 million autocallable contingent yield notes on S&P 500, Euro Stoxx 50
By Wendy Van Sickle
Columbus, Ohio, June 2 – HSBC USA Inc. priced $3.38 million of autocallable contingent yield notes due May 31, 2019 linked to the lesser performing of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.7% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning Nov. 25, 2016.
The payout at maturity will be par unless either index finishes below the 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. is the agent, and UBS Financial Services Inc. will handle distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent yield notes
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| Underlying indexes: | S&P 500 and Euro Stoxx 50
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| Amount: | $3,379,300
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| Maturity: | May 31, 2019
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| Coupon: | 7.7%, payable quarterly if indexes close at or above coupon barrier on quarterly observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless either index finishes below downside threshold, in which case full exposure to decline of lesser-performing index
|
| Call: | Beginning Nov. 25, 2016, automatically at par if indexes close at or above initial levels on any quarterly observation date
|
| Initial levels: | 3,071.21 for Euro Stoxx 50 and 2,090.10 for S&P 500
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| Downside thresholds: | 2,149.85 for Euro Stoxx 50 and 1,463.07 for S&P 500; 70% of initial levels
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| Pricing date: | May 26
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| Settlement date: | May 31
|
| Distributor: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2%
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| Cusip: | 40434V806
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