Published on 11/22/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.2 million callable notes with contingent return linked to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Nov. 22 – HSBC USA Inc. priced $1.2 million of callable notes with contingent return due Nov. 27, 2020 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 six months, the notes will pay a contingent coupon at an annual rate of 5.5% if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that period.
Beginning May 29, 2018, the notes are callable at par semiannually.
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: | $1,197,000
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Maturity: | Nov. 27, 2020
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Coupon: | 5.5% per year, payable semiannually if each index closes at or above barrier level on observation date for that period
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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 May 29, 2018 at par semiannually
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Initial index levels: | 2,578.85 for S&P 500 and 1,492.822 for Russell 2000
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Barrier levels: | 1,805.195 for S&P 500 and 1,044.9754 for Russell 2000; 70% of initial levels
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Pricing date: | Nov. 17
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Settlement date: | Nov. 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40435FJY4
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