Published on 12/28/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $10.64 million contingent return barrier autocallables on S&P, fund
By Susanna Moon
Chicago, Dec. 28 – HSBC USA Inc. priced $10.64 million of 0% autocallable barrier notes with contingent return due Jan. 4, 2021 linked to the S&P 500 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized call premium of 14% if each component closes at or above its initial level on any annual call date after one year.
The payout at maturity will be par plus a 10% contingent return unless either component finishes below its 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing component.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with contingent return
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Underlying: | S&P 500 index, SPDR S&P Oil & Gas Exploration and Production ETF
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Amount: | $10,641,000
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Maturity: | Jan. 4, 2021
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 10% unless either underlying finishes below its trigger level, in which case investors will be fully exposed to any losses of the worst performing component
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Call: | At par plus an annualized call premium of 14% if each component closes at or above the initial level on any annual call date beginning Dec. 29, 2017
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Initial levels: | 2,263.79 for S&P, $42.23 for oil fund
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Trigger levels: | 1,131.895 for S&P, $21.115 for oil fund; 50% of initial levels
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Pricing date: | Dec. 23
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Settlement date: | Dec. 30
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.15%
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Cusip: | 40433UB21
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