By Wendy Van Sickle
Columbus, Ohio, Oct. 3 – HSBC USA Inc. priced $18.65 million of autocallable market-linked step-up notes due Sept. 26, 2019 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at an annual call premium of 15.35% if the index closes at or above its initial level on either of the two annual observation dates.
If the index finishes above the step-up value – 130% of the initial level – the payout at maturity will be par of $10 plus the index gain.
If the index gains by up to the step-up level, the payout will be par plus the step-up payment of 30%.
Otherwise, investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | Euro Stoxx 50
|
| Amount: | $18,647,950
|
| Maturity: | Sept. 26, 2019
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If index finishes above step-up value, par plus index gain; if index gains by up to step-up level, par plus 30%; exposure to losses
|
| Call: | At par plus a call premium of 15.35% per year if the index closes at or above its initial level on Oct. 5, 2017 or Sept. 30, 2018
|
| Initial level: | 2,991.58
|
| Step-up value: | 3,889.05, 130% of initial level
|
| Pricing date: | Sept. 29
|
| Settlement date: | Oct. 6
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40435B502
|
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