Published on 5/17/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.39 million 7% contingent yield trigger callables tied to two indexes
By Susanna Moon
Chicago, May 17 – HSBC USA Inc. priced $3.39 million of trigger callable contingent yield notes due May 7, 2021 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 7% if each index closes at or above its 78.35% coupon barrier on the observation date for that quarter.
The notes are callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless any index finishes below its 78.35% trigger level, in which case investors will lose 1% for each 1% decline of the worst performing index.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger callable contingent yield notes
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $3,393,700
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Maturity: | May 7, 2021
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Coupon: | 7% annualized, payable quarterly if each index closes at or above its 78.35% coupon barrier on observation date for that quarter
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Price: | Par of $10
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Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, 1% loss per 1% decline of worst performing index
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Call option: | At par on each quarterly observation date beginning May 2, 2019
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Initial levels: | 2,663.42 for S&P, 1,565.603 for Russell
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Trigger levels: | 2,086.79 for S&P, 1,226.65 for Russell; 78.35% of initial levels
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Pricing date: | May 4
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Settlement date: | May 9
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40435M318
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