Published on 12/7/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $872,000 contingent income securities linked to Russell, S&P 500
By Wendy Van Sickle
Columbus, Ohio, Dec. 7 – HSBC USA Inc. priced $872,000 of contingent income securities due Dec. 3, 2026 linked to the worse 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 8.3% if each index closes at or above its 75% coupon barrier on the determination date for that quarter.
The payout at maturity will be par unless either index finishes below its 50% downside threshold level, 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 the dealer.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income securities
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Underlying indexes: | Russell 2000 and S&P 500
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Amount: | $872,000
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Maturity: | Dec. 3, 2026
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Coupon: | 8.3% payable quarterly if each index closes at or above coupon barrier on observation date that quarter
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Price: | Par
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Payout at maturity: | Par unless either index finishes below its downside threshold, in which case investors will lose 1% for each 1% decline of the worse-performing index
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Initial levels: | 1,322.339 for Russell 2000 and 2,198.81 for S&P 500
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Coupon barriers: | 991.75425 for Russell 2000 and 1,649.1075 for S&P 500; 75% of initial levels
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Downside thresholds: | 661.1695 for Russell 2000 and 1,099.40 for S&P 500; 50% of initial levels
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Pricing date: | Nov. 30
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Settlement date: | Dec. 5
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Agent: | HSBC Securities (USA) Inc.
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Distributor: | Morgan Stanley Wealth Management
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Fees: | 3.5%
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Cusip: | 40433UA30
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