Published on 5/1/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.34 million contingent income barrier notes on Russell
By Marisa Wong
Morgantown, W.Va., May 1 – HSBC USA Inc. priced $2.34 million of contingent income barrier notes due April 28, 2023 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 an annual rate of 6.5% if the index closes at or above the 70% barrier level on the review date for that quarter.
The payout at maturity will be par unless the index finishes below 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: | $2,337,000
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Maturity: | April 28, 2023
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Coupon: | 6.5% 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 unless index falls below barrier level, in which case full exposure to any losses
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Initial level: | 1,379.854
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Coupon barrier: | 965.8978, 70% of initial level
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Barrier level: | 965.8978, 70% of initial level
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Pricing date: | April 21
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Settlement date: | April 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.25%
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Cusip: | 40433U2A3
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