Published on 5/2/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.9 million 5.7% 18-month autocallables tied to two indexes
By Susanna Moon
Chicago, May 2 – HSBC USA Inc. priced $1.9 million of 5.7% autocallable yield notes due Oct. 31, 2018 linked to the worse performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be called at par if each index closes at or above its initial level on any review date beginning Oct. 26, 2017.
The payout at maturity will be par unless any index finishes below its initial level and ever closes below its 70% trigger level during the life of the notes, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable yield notes
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Underlying indexes: | S&P 500, Russell 2000
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Amount: | $1,904,000
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Maturity: | Oct. 31, 2018
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Issue price: | Par
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Coupon: | 5.7% annualized, payable monthly
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Payout at maturity: | Par unless any index falls and ever dips below 70% trigger, in which case 1% loss per 1% decline of worst performing index
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Call: | At par if each index closes at or above initial level on any review date beginning Oct. 26, 2017
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Initial index levels: | 2,388.61 for S&P, 1,411.077 for Russell
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Barrier levels: | 1,672.027 for S&P, 987.7539 for Russell; 70% of initial levels
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Pricing date: | April 25
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Settlement date: | April 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.875%
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Cusip: | 40433U2V7
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