Published on 4/18/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.35 million autocallable contingent income barrier notes on stocks
By Wendy Van Sickle
Columbus, Ohio, April 18 – HSBC USA Inc. priced $4.35 million of autocallable contingent income barrier notes due April 12, 2019 linked to the lesser performing of the common stocks of BlackRock, Inc., Celgene Corp. and Qualcomm, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at a rate of 17% per year if each stock closes at or above its trigger level, 70% of its initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date.
The payout at maturity will be par plus the final coupon unless either stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | BlackRock, Inc., Celgene Corp. and Qualcomm, Inc.
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| Amount: | $4.35 million
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| Maturity: | April 12, 2019
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| Coupon: | 17%, payable each quarter that each stock closes at or above trigger level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, a number of shares of the worst performing stock equal to $1,000 divided by the initial price of that stock
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| Call: | At par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date
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| Initial levels: | $386.02 for BlackRock, $125.58 for Celgene, $56.32 for Qualcomm
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| Trigger levels: | $270.214 for BlackRock, $87.906 for Celgene, $39.424 for Qualcomm; 70% of initial prices
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| Pricing date: | April 7
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| Settlement date: | April 12
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40433U3G9
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