Published on 11/12/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $555,000 autocallable barrier notes on two ETFs
By Wendy Van Sickle
Columbus Ohio, Nov. 12 – HSBC USA Inc. priced $555,000 of 0% autocallable barrier notes due May 7, 2020 linked to the SPDR S&P Oil & Gas Exploration & Production ETF and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 20% a year if each underlying closes at or above its initial level on any monthly observation date after six months.
The payout at maturity will be par unless either underlying falls by more than 35%, in which case investors will be fully exposed to the decline of the worse performer.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes
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Underlying assets: | SPDR S&P Oil & Gas Exploration & Production ETF and Financial Select Sector SPDR fund
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Amount: | $555,000
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Maturity: | May 7, 2020
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless either underlying falls by more than 35%, in which case investors will be fully exposed to the decline of the worst performer
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Call: | Automatically at par plus a call premium of 20% a year if each underlying closes at or above its initial level on any monthly observation date after six months
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Initial levels: | $36.18 for Oil & Gas, $26.38 for Financial
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Coupon barriers/triggers: | $23.517 for Oil & Gas, $17.174 for Financial; 65% of initial levels
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Pricing date: | Nov. 2
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Settlement date: | Nov. 7
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 1%
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Cusip: | 40435UAD6
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