Published on 1/3/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $425,000 callable barrier notes with contingent return on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 3 – HSBC USA Inc. priced $425,000 of callable barrier notes with contingent return due Dec. 23, 2027 linked to the least performing of 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 quarterly contingent coupon at an annualized rate of 7.35% if each index closes at or above its 75% coupon trigger on the related quarterly observation date.
The notes will be callable at par on any quarterly call date beginning Dec. 31, 2018.
The payout at maturity will be par plus the contingent coupon, if any, unless either index finishes below its 55% barrier level, in which case investors will be fully exposed to any decline of the least performing index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with contingent return
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $425,000
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Maturity: | Dec. 23, 2027
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Coupon: | 7.35%, payable each quarter that each index closes at or above its coupon trigger level on the 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 1% loss for each 1% decline of least performing index from initial level
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Call: | At par if each index closes at or above initial level on any quarterly date beginning Dec. 31, 2018
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Initial index levels: | 2,680.50 for S&P, 1,544.226 for Russell
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Coupon trigger levels: | 2,010.38 for S&P, 1,158.17 for Russell; 75% of initial levels
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Barrier levels: | 1,474.28 for S&P, 849.324 for Russell; 55% of initial levels
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Pricing date: | Dec. 26
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Settlement date: | Dec. 29
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40435FNM5
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