Published on 10/12/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.98 million 6% 18-month worst-of autocallables tied to indexes
By Susanna Moon
Chicago, Oct. 12 – HSBC USA Inc. priced $4.98 million of 6% worst-of autocallable fixed-rate notes due April 12, 2018 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable semiannually.
The notes will be called at par plus the coupon if each underlying index closes at or above its initial level on any semiannual call date.
The payout at maturity will be par unless either index finishes below the 80% barrier level, in which case investors will lose 1.25% for each 1% decline of the worse performing index.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Worst-of autocallable fixed-rate notes
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Underlying indexes: | Russell 2000 index and the S&P 500 index
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Amount: | $4,982,000
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Maturity: | April 12, 2018
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Coupon: | 6%, payable semiannually
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Price: | Par
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Payout at maturity: | Par unless either index falls by more than 20%, in which case 1.25% loss per 1% decline of worse performing index beyond 20%, with full exposure to any losses
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Call: | At par plus coupon if each index closes at or above initial level on any semiannual date after April 7, 2017
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Initial levels: | 1,246.239 for Russell and 2,160.77 for S&P
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Barrier levels: | 80% of initial levels
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Pricing date: | Oct. 6
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Settlement date: | Oct. 12
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 0.15%
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Cusip: | 40433UXN1
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