Published on 7/25/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.37 million autocallable barrier notes on Stoxx, ETF
By Wendy Van Sickle
Columbus Ohio, July 25 – HSBC USA Inc. priced $1.37 million of autocallable barrier notes with contingent return and step-down call threshold feature due July 28, 2021 linked to the Euro Stoxx 50 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 11.25% a year if each underlying closes at or above its call level on any annual observation date.
The call level will be 100% of the initial level on the first observation date, 97.5% on the second, 95% on the third and 92.5% on the fourth.
The payout at maturity will be par plus a contingent payment of 10% unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Autocallable barrier notes with contingent return and step-down call threshold feature
|
Underlying assets: | Euro Stoxx 50 index and iShares MSCI Emerging Markets exchange-traded fund
|
Amount: | $1,374,000
|
Maturity: | July 28, 2021
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | Par plus 10% unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer
|
Call: | Automatically at par plus 11.25% per year if each underlying closes at or above call level on an annual review date
|
Call levels: | 100% of initial level on first review date, 97.5% on second, 95% on third, 92.5% on fourth
|
Initial levels: | 3,451.71 for index, $43.63 for ETF
|
Trigger values: | 2,416.197 for index and $30.541 for ETF; 70% of initial levels
|
Pricing date: | July 21
|
Settlement date: | July 28
|
Underwriter: | HSBC Securities (USA) Inc.
|
Fees: | 2.25%
|
Cusip: | 40435FAW7
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.