Published on 6/7/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.76 million 5.4% fixed-rate autocalls tied to Russell, S&P 500
By Wendy Van Sickle
Columbus, Ohio, June 7 – HSBC USA Inc. priced $2.76 million of 5.4% autocallable fixed-rate notes due Dec. 2, 2019 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.
Interest is payable semiannually.
The notes will be called at par plus any unpaid coupon if each index closes at or above its initial level on any semiannual review date.
The payout at maturity will be par unless either index finishes below its 80% buffer level, in which case investors will lose 1.25% for each 1% decline of the worse performing index beyond 20%.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable fixed-rate notes
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Underlying assets: | Russell 2000 index and S&P 500 index
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Amount: | $2,762,000
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Maturity: | Dec. 2, 2019
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Coupon: | 5.4% annualized, payable semiannually
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Price: | Par
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Payout at maturity: | Par unless either asset falls below buffer, in which case 1.25% loss for each 1% decline of worse performing index beyond buffer
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Call: | At par plus any unpaid coupon if each index closes at or above its initial level on any semiannual review date
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Initial levels: | 1,626.928 for Russell and 2,721.33 for S&P
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Buffer levels: | 80% of initial levels
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Pricing date: | May 25
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Settlement date: | May 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40435FG50
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