Published on 5/16/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.07 million trigger autocallable contingent yield notes on Stoxx 50, Stoxx Banks
By Wendy Van Sickle
Columbus, Ohio, May 16 – HSBC USA Inc. priced $1.07 million trigger autocallable contingent yield notes due May 14, 2021 linked to the Euro Stoxx 50 index and the Euro Stoxx Banks 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 7.25% if each index closes at or above its coupon barrier, 65% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon, unless either index finishes below the 65% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying indexes: | Euro Stoxx 50 and Euro Stoxx Banks
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Amount: | $1,068,000
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Maturity: | May 14, 2021
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Coupon: | 7.25%, payable quarterly if each index closes at or above coupon barrier on observation date
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Price: | Par of $10
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Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
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Payout at maturity: | Par plus coupon unless either index closes below downside threshold level, in which case will lose 1% for each 1% decline of the worse performing index from initial level
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Initial levels: | 129.93 for Euro Stoxx Banks, 3,565.52 for Euro Stoxx 50
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Coupon barrier/thresholds: | 84.45 for Euro Stoxx Banks, 2,317.59 for Euro Stoxx 50, 65% of initial levels
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Pricing date: | May 11
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Settlement date: | May 16
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40435M417
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