Published on 9/6/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.13 million contingent income autocallables tied to S&P, Russell
By Susanna Moon
Chicago, Sept. 6 – HSBC USA Inc. priced $6.13 million of contingent income autocallable securities due Sept. 5, 2019 linked to the Russell 2000 index and 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 8.5% if each index closes at or above the 80% coupon barrier level on the determination date for that quarter.
The notes will be called if each index closes at or above its initial level on any of the first 11 determination dates.
The payout at maturity will be par plus any contingent coupon unless either index finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses of the worse performing index.
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 autocallable securities
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $6,127,000
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| Maturity: | Sept. 5, 2019
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| Coupon: | 8.5%, payable quarterly if each index closes above 80% coupon barrier
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| Price: | Par
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| Payout at maturity: | Par plus any contingent coupon unless either index finishes below trigger level, in which case full exposure to any losses of the worse performing index
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| Call option: | At par plus the contingent coupon will be called if each index closes at or above its initial level on any of the first 11 determination dates
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| Initial levels: | 1,239.907 for Russell and 2,170.95 for S&P
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| Downside thresholds: | 991.926 for Russell and 1,736.76 for S&P, 80% of initial levels
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 6
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 40433UUZ7
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