Published on 4/5/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.8 million contingent income notes on S&P 500
By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $4.8 million of contingent income securities due April 5, 2027 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 7.2% if the index closes at or above the 75% barrier level on the review date for that quarter.
The payout at maturity will be par plus the contingent interest unless the index finishes below the 65% downside threshold level, in which case investors will lose 1% for each 1% index decline.
HSBC Securities (USA) Inc. is the agent and Morgan Stanley Wealth Management is handling distribution.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income securities
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Underlying index: | S&P 500
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Amount: | $4,795,000
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Maturity: | April 5, 2027
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Coupon: | 7.2% per year, payable each quarter that index closes at or above coupon barrier on review date for that quarter
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Price: | Par
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Payout at maturity: | Par plus contingent interest unless index falls below downside threshold, in which case full exposure to any losses
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Initial level: | 2,362.72
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Coupon barrier: | 1,772.04, 75% of initial level
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Downside threshold: | 1,417.632, 60% of initial level
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Pricing date: | March 31
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Settlement date: | April 5
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Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as a distributor
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Fees: | 3.5%
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Cusip: | 40433UY59
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