Published on 10/25/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.64 million contingent income barrier notes on Russell
By Marisa Wong
Morgantown, W.Va., Oct. 25 – HSBC USA Inc. priced $1.64 million of 0% contingent income barrier notes due Oct. 28, 2022 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at a rate of 6.25% per year if the index closes at or above the coupon trigger, 70% of the initial level, on the review date for the applicable quarter.
The payout at maturity will be par plus the final contingent interest payment unless the final index level is less than the 70% barrier level, in which case investors will lose 1% for each 1% index decline.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income barrier notes
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Underlying index: | Russell 2000
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Amount: | $1,637,000
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Maturity: | Oct. 28, 2022
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Coupon: | 6.25% per year, payable each quarter that index closes at or above coupon trigger on applicable quarterly review date
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Price: | Par
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Payout at maturity: | Par plus the final contingent interest payment unless the final index level is less than the barrier level, in which case investors will lose 1% for each 1% index decline
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Initial level: | 1,218.096
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Coupon trigger/barrier: | 852.6672, 70% of initial level
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Pricing date: | Oct. 21
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Settlement date: | Oct. 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.25%
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Cusip: | 40433UXE1
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