Published on 6/21/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.09 million buffered autocallables with rebate return on two indexes
By Susanna Moon
Chicago, June 21 – HSBC USA Inc. priced $6.09 million of buffered autocallable yield notes with rebate return due Dec. 22, 2017 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized call premium of 9% if each index closes at or above its initial level on any semiannual call date.
If each index finishes at or above the 80% barrier level, the payout at maturity will be par plus the rebate return of 8%.
Otherwise, investors will lose 1.25% for every 1% decline of the worse performing index beyond 20%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Buffered autocallable yield notes with rebate return
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Underlying indexes: | Russell 2000, S&P 500
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Amount: | $6.09 million
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Maturity: | Dec. 22, 2017
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If each index finishes at or above barrier level, par plus 8%; otherwise, 1.25% loss for each 1% decline of the worse performing index beyond 20%
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Call: | At par plus annual call premium of 9% if each index closes at or above initial level on Dec. 19, 2016, June 19, 2017 or Dec. 19, 2017
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Initial levels: | 1,144.698 for Russell and 2,071.22 for S&P
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Barrier level: | 915.758 for Russell and 1,656.98 for S&P; 80% of initial levels
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Pricing date: | June 17
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Settlement date: | June 22
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.05%
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Cusip: | 40433UPZ3
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