Published on 8/19/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $12.63 million contingent income callable notes tied to S&P
By Susanna Moon
Chicago, Aug. 19 – HSBC USA Inc. priced $12.63 million of contingent income callable securities due Aug. 20, 2026 linked to the S&P 500 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 8.05% if the index closes at or above the 75% coupon barrier level on the determination date for that quarter.
The notes are callable on any interest payment date after one year.
The payout at maturity will be par plus any contingent coupon unless the index finishes below its 60% trigger level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income callable securities
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Underlying index: | S&P 500
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Amount: | $12,634,700
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Maturity: | Aug. 20, 2026
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Coupon: | 8.05%, payable quarterly if index closes above coupon barrier
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Price: | Par
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Payout at maturity: | Par plus any contingent coupon unless index finishes below trigger level, in which case full exposure to any losses
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Call option: | At par plus the contingent coupon on any interest payment date beginning Aug. 22, 2017
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Initial level: | 2,182.22
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Coupon barrier: | 1,636.67, 75% of initial level
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Downside threshold: | 1,309.33, 60% of initial level
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Pricing date: | Aug. 17
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Settlement date: | Aug. 22
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Agent: | HSBC Securities (USA) Inc.
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Distributor: | Morgan Stanley Wealth Management
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Fees: | 3%
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Cusip: | 40434V269
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