By Angela McDaniels
Tacoma, Wash., July 19 – HSBC USA Inc. priced $2.6 million of trigger autocallable contingent yield notes due July 22, 2019 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 8.5% if each index closes at or above its downside threshold level, 75% of its initial level, on the observation date for that quarter.
Beginning July 19, 2017, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any semiannual observation date.
The payout at maturity will be par unless either index finishes below its downside threshold level, in which case investors will be fully exposed to the decline of the lesser-performing index.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying indexes: | S&P 500 and Russell 2000
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Amount: | $2.6 million
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Maturity: | July 22, 2019
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Coupon: | 8.5%, payable quarterly if indexes close at or above downside threshold levels on observation date for that quarter
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Price: | Par of $10
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Payout at maturity: | Par unless either index finishes below downside threshold level, in which case full exposure to decline of lesser-performing index
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Call: | Beginning July 19, 2017, automatically at par if indexes close at or above initial levels on any semiannual observation date
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Initial index levels: | 2,161.74 for S&P 500 and 1,205.309 for Russell 2000
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Downside thresholds: | 1,621.31 for S&P 500 and 903.982 for Russell 2000; 75% of initial levels
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Pricing date: | July 15
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Settlement date: | July 20
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Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
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Fees: | 0.5%
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Cusip: | 40434V392
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