Published on 10/19/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.21 million 7.5% contingent yield trigger autocalls on EM, EAFE funds
By Susanna Moon
Chicago, Oct. 19 – HSBC USA Inc. priced $5.21 million of trigger autocallable contingent yield notes due Sept. 29, 2023 linked to the lesser performing of the iShares MSCI EAFE ETF and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 7.5% if each underlying fund closes at or above its 70% 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 either fund finishes below its 70% trigger level, in which case investors will lose 1% for each 1% decline of the worse performing fund.
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 funds: | iShares MSCI EAFE ETF and iShares MSCI Emerging Markets ETF
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| Amount: | $5,207,600
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| Maturity: | Sept. 29, 2023
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| Coupon: | 7.5% annualized, payable quarterly if each fund closes at or above its 70% 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 fund finishes at or above trigger level, par; otherwise, 1% loss per 1% decline of worse performing fund
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| Call: | At par if fund closes at or above its initial level on each quarterly observation date beginning Sept. 26, 2019
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| Initial levels: | $68.69 for EAFE fund, $43.00 for EM fund
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| Trigger levels: | $48.08 for EAFE fund, $30.10 for EM fund, 70% of initial levels
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 28
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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: | 40435X199
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