Published on 8/18/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.44 million contingent income callable notes tied to three indexes
By Marisa Wong
Morgantown, W.Va., Aug. 18 – HSBC USA Inc. priced $4.44 million contingent income callable securities due Nov. 21, 2018 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.15% if each index closes at or above its downside threshold level, 65% of its initial index level, on the determination date for that quarter.
The notes are callable at par on any quarterly determination date.
If each index finishes at or above its downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will lose 1% for each 1% decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | Dow Jones Industrial Average, the Russell 2000 index and the S&P 500 index
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| Amount: | $4,443,000
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| Maturity: | Nov. 21, 2018
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| Coupon: | 7.15% per year, payable on a quarter if each index closes at or above its downside threshold level on the determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above its downside threshold level, par plus the final contingent coupon; otherwise, investors will lose 1% for each 1% decline of the least-performing index
|
| Call option: | At par on any quarterly determination date
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| Initial levels: | 18,552.02 for Dow, 1,231.129 for Russell and 2,178.15 for S&P
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| Downside thresholds: | 12,058.81 for Dow, 800.234 for Russell and 1,415.80 for S&P
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| Pricing date: | Aug. 16
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| Settlement date: | Aug. 19
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
|
| Cusip: | 40434V129
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