Published on 4/6/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5 million trigger autocallable contingent yield notes tied to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, April 6 – HSBC USA Inc. priced $5 million of trigger autocallable contingent yield notes due April 10, 2026 linked to the S&P 500 index and the Russell 2000 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 7.5% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning April 6, 2017.
The payout at maturity will be par unless either index finishes below the 50% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $5 million
|
| Maturity: | April 10, 2026
|
| Coupon: | 7.5%, payable quarterly if each index closes at or above coupon barrier on observation date
|
| Price: | Par of $10
|
| Call: | Beginning April 6, 2017, at par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
|
| Payout at maturity: | Par unless index closes below 50% trigger level, in which case full exposure to index loss
|
| Initial levels: | 2,045.17 for S&P, 1,095.854 for Russell
|
| Coupon barriers: | 1,431.62 for S&P, 767.098 for Russell, 70% of initial levels
|
| Trigger levels: | 1,022.59 for S&P, 547.927 for Russell, 50% of initial levels
|
| Pricing date: | April 5
|
| Settlement date: | April 8
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40434N424
|
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