Published on 10/2/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $750,000 callable notes with contingent return linked to S&P, Russell
By Angela McDaniels
Tacoma, Wash., Oct. 2 – HSBC USA Inc. priced $750,000 of callable notes with contingent return due Oct. 4, 2027 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.65% if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
Beginning Oct. 4, 2018, the notes are callable at par quarterly.
The payout at maturity will be par plus the final contingent coupon unless either index finishes below its barrier level, in which case investors will be fully exposed to the decline 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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Indexes: | S&P 500 and Russell 2000
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Amount: | $750,000
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Maturity: | Oct. 4, 2027
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Coupon: | 7.65% per year, payable quarterly if each index closes at or above barrier level on observation date for that quarter
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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 decline of worse-performing index
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Call option: | Beginning Oct. 4, 2018 at par quarterly
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Initial index levels: | 2,510.06 for S&P 500 and 1,488.786 for Russell 2000
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Barrier levels: | 1,757.042 for S&P 500 and 1,042.1502 for Russell 2000; 70% of initial levels
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Pricing date: | Sept. 28
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Settlement date: | Oct. 3
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.55%
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Cusip: | 40435FHT7
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