Published on 3/12/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $659,000 5.65% contingent return barrier autocalls on indexes
By Susanna Moon
Chicago, March 8 – HSBC USA Inc. priced $659,000 of autocallable barrier notes with contingent return due Feb. 26, 2025 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 5.65% if each index closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each asset closes at or above its initial level on any review date after one year.
The payout at maturity will be par plus the contingent coupon unless either asset finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying indexes: | Russell 2000, S&P 500
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| Amount: | $659,000
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| Maturity: | Feb. 26, 2025
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| Coupon: | 5.65% annualized, payable quarterly if each index closes at or above its 70% coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless either asset falls below 60% trigger, in which case full exposure to any losses of worse performing index
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| Call: | At par if each asset closes at or above call level on any review date beginning Feb. 21, 2019
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| Initial levels: | 1,549.186 for Russell, 2,747.30 for S&P
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| Coupon barriers: | 1,084.4302 for Russell, 1,923.11 for S&P; 70% of initial levels
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| Initial levels: | 929.5116 for Russell, 1,648.38 for S&P; 60% of initial levels
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
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| Cusip: | 40435FTP2
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