Published on 1/11/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $12.18 million 5.05% worst-of autocallables on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 11 – HSBC USA Inc. priced $12.18 million of 5.05% worst-of autocallable fixed-rate notes due July 9, 2019 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
The notes will be called at par plus the coupon if each underlying index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless either index finishes below the 80% buffer level, in which case investors will lose 1.25% for each 1% decline of the worse performing index beyond 20%.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Worst-of autocallable fixed-rate notes
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Underlying indexes: | Russell 2000 index and S&P 500 index
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Amount: | $12,175,000
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Maturity: | July 9, 2019
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Coupon: | 5.05%, payable quarterly
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Price: | Par
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Payout at maturity: | Par unless either index falls by more than 20%, in which case 1.25% loss per 1% decline of worse performing index beyond 20%
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Call: | At par plus coupon if each index closes at or above initial level on any quarterly observation date
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Initial levels: | 2,751.29 for S&P, 1,560.099 for Russell
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Pricing date: | Jan. 9
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Settlement date: | Jan. 12
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40435FRH2
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