Published on 5/8/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $7.15 million market-linked autocallables on three indexes
By Susanna Moon
Chicago, May 8 – HSBC USA Inc. priced $7.15 million of market linked securities – autocallable with contingent coupon and contingent downside due May 2, 2019 linked to the lowest performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.7% if each index closes at or above the 70% threshold on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly review date after six months.
The payout at maturity will be par unless any index falls below the 70% threshold, in which case investors will be exposed to any losses of the worst performing index.
| Issuer: | HSBC USA Inc.
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| Issue: | Market linked securities – autocallable securities with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $7.15 million
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| Maturity: | May 2, 2019
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| Coupon: | 7.7% annualized, payable quarterly if each index closes at or above 70% threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index falls by more than 30%, in which case fully exposure to any losses of worst performing index
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| Call: | At par if each index closes at or above its initial level on any quarterly observation date beginning October 2017
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| Initial index levels: | 2,388.77 for S&P, 1,417.127 for Russell, 3,563.29 for Stoxx
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| Threshold levels: | 1,672.139 for S&P, 991.9889 for Russell, 2,494.303 for Stoxx, 70% of initial levels
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| Pricing date: | April 27
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| Settlement date: | May 2
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 1.325%
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| Cusip: | 40433U2C9
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