Published on 9/26/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.87 million of callable notes with contingent return on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Sept. 26 – HSBC USA Inc. priced $3.87 million of callable notes with contingent return due Sept. 29, 2020 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 7% if each index closes at or above the 70% coupon trigger level on a semiannual observation date.
The notes will be callable semiannually after six months.
The payout at maturity will be par plus the final contingent coupon, if any, unless either index finishes below its 70% barrier level, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable notes with contingent return
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Underlying indexes: | S&P 500 and Russell 2000
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Amount: | $3,871,000
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Maturity: | Sept. 29, 2020
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Coupon: | 7%, payable semiannually if each index closes at or above coupon trigger level on observation date
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Price: | Par
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Payout at maturity: | Par plus contingent coupon unless either index finishes below barrier level, in which case full exposure to any losses of worse performing index
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Call option: | At par on any semiannual call date after six months
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Initial levels: | 2,502.22 for S&P and 1,450.781 for Russell
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Coupon trigger/barriers: | 1,751.554 for S&P and 1,015.5467 for Russell; 70% of initial levels
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Pricing date: | Sept. 22
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Settlement date: | Sept. 29
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40435FEV5
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