Published on 5/4/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2 million contingent income barrier autocallables on three bank stocks
By Wendy Van Sickle
Columbus, Ohio, May 4 – HSBC USA Inc. priced $2 million of autocallable contingent income barrier notes due May 3, 2021 linked to the least performing of the common stocks of Bank of America Corp., Citigroup Inc. and Goldman Sachs Group, Inc., 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 8% if each stock closes at or above its trigger level, 60% of its initial share price, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date.
The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying stocks: | Bank of America Corp., Citigroup Inc. and Goldman Sachs Group, Inc.
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Amount: | $2 million
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Maturity: | May 3, 2021
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Coupon: | 8%, payable semiannually if each stock closes at or above trigger level on determination date for that period
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Price: | Par
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Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, number of shares of the worst-performing stock equal to $1,000 divided by initial share price
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Initial level: | $30.07 for BofA, $69.18 for Citigroup, $240.09 for Goldman
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Trigger/barrier level: | $18.042 for BofA, $41.508 for Citigroup, $144.054 for Goldman, 60% of initial price
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Pricing date: | April 26
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Settlement date: | May 1
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.75%
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Cusip: | 40435M466
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