Published on 6/29/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $12.03 million 5% 18-month worst-of autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, June 29 – HSBC USA Inc. priced $12.03 million of 5% worst-of autocallable fixed-rate notes due Jan. 2, 2019 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable semiannually.
The notes will be called at par plus the coupon if each underlying index closes at or above its initial level on any semiannual call date after six months.
The payout at maturity will be par unless either index finishes below the 80% barrier level, in which case investors will lose 1.25% for each 1% decline of the worse performing index.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Worst-of autocallable fixed-rate notes
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Underlying indexes: | Russell 2000 index and the S&P 500 index
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Amount: | $12,028,000
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Maturity: | Jan. 2, 2019
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Coupon: | 5%, payable semiannually
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Price: | Par
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Payout at maturity: | Par unless either index falls by more than 20%, in which case 1.25% loss per 1% decline of worse performing index beyond 20%, with full exposure to any losses
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Call: | At par plus coupon if each index closes at or above initial level on any semiannual date beginning Dec. 27, 2017
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Initial levels: | 2,419.38 for S&P 500, 1,403.52 for Russell 2000
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Barrier levels: | 80% of initial levels
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Pricing date: | June 27
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Settlement date: | June 30
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40435FBZ9
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