Published on 10/25/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8.83 million contingent income autocallables on indexes
By Marisa Wong
Morgantown, W.Va., Oct. 25 – HSBC USA Inc. priced $8.83 million of contingent income autocallable securities due Oct. 26, 2021 linked to the worst performing of 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 6.8% if each index closes at or above the 75% coupon barrier level on the applicable quarterly determination date.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any of the quarterly determination dates, beginning with the fourth determination date.
The payout at maturity will be par plus the final coupon, if any, unless either index finishes below the 55% downside threshold level, in which case investors will lose 1% for each 1% decline of the worst performing index.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income auto-callable securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $8,834,000
|
| Maturity: | Oct. 26, 2021
|
| Coupon: | 6.8% annualized, payable each quarter that both indexes close at or above coupon barrier levels on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon, if any, if each index finishes at or above downside threshold level; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call: | At par plus contingent payment if each index closes at or above initial level on any quarterly determination date, beginning with fourth date
|
| Initial index levels: | 1,218.096 for Russell and 2,141.16 for S&P
|
| Coupon barrier levels: | 913.572 for Russell and 1,605.87 for S&P; 75% of initial levels
|
| Downside thresholds: | 669.9528 for Russell and 1,177.638 for S&P; 55% of initial levels
|
| Pricing date: | Oct. 21
|
| Settlement date: | Oct. 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 3%
|
| Cusip: | 40433UXS0
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
