Published on 7/26/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.11 million trigger autocallables linked to S&P, Russell
By Angela McDaniels
Tacoma, Wash., July 26 – HSBC USA Inc. priced $6.11 million of trigger autocallable contingent yield notes due July 28, 2026 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 7.1% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
Beginning July 24, 2017, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless either index finishes below its downside threshold level, 50% of its initial level, in which case investors will be fully exposed to the decline of the lesser-performing index.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $6,106,000
|
| Maturity: | July 28, 2026
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| Coupon: | 7.1%, payable quarterly if indexes close at or above coupon barriers on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless either index finishes below downside threshold level, in which case full exposure to decline of lesser-performing index
|
| Call: | Beginning July 24, 2017, automatically at par if indexes close at or above initial levels on any quarterly observation date
|
| Initial index levels: | 2,175.03 for S&P 500 and 1,212.889 for Russell 2000
|
| Coupon barriers: | 1,522.52 for S&P 500 and 849.022 for Russell 2000; 70% of initial levels
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| Downside thresholds: | 1,087.52 for S&P 500 and 606.445 for Russell 2000; 50% of initial levels
|
| Pricing date: | July 22
|
| Settlement date: | July 27
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40434V350
|
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