Published on 1/23/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.12 million autocallable securities on Merck
By Wendy Van Sickle
Columbus, Ohio, Jan. 23 – HSBC USA Inc. priced $3.9 million of 0% autocallable securities due Jan. 22, 2021 linked to Merck & Co., Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized premium of 8.5% if the stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par plus 25.5% if the stock finishes above its initial level. Otherwise, the payout will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable securities
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Underlying stock: | Merck & Co., Inc.
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Amount: | $5,119,000
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Maturity: | Jan. 22, 2021
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If stock finishes at or above initial level, par plus 25.5%; otherwise, par unless stock finishes below downside threshold, in which case full exposure to decline
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Call: | At par plus 8.5% annualized call premium if stock closes at or above initial level on any quarterly call date
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Initial share price: | $61.28
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Downside threshold: | $49.024, 80% of initial share price
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Pricing date: | Jan. 19
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Settlement date: | Jan. 24
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Agent: | HSBC Securities (USA) Inc.
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Distribution: | Morgan Stanley Wealth Management
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Fees: | 2.5%
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Cusip: | 40435J489
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