Published on 6/3/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.51 million trigger autocallable contingent yield notes on indexes
By Marisa Wong
Morgantown, W.Va., June 3 – HSBC USA Inc. priced $1.51 million of trigger autocallable contingent yield notes due May 31, 2018 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 will pay a contingent quarterly coupon at an annual rate of 8.1% 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.
The payout at maturity will be par unless either index finishes below the 70% downside threshold level, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $1,509,600
|
| Maturity: | May 31, 2018
|
| Coupon: | 8.1%, payable quarterly if each index closes at or above coupon barrier on quarterly observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless either index finishes below downside threshold, in which case full exposure to decline of lesser performing index
|
| Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
|
| Initial levels: | 2,090.10 for S&P, 1,139.754 for Russell
|
| Barrier/downside threshold: | 1,463.07 for S&P, 797.828 for Russell, 70% of initial levels
|
| Pricing date: | May 26
|
| Settlement date: | May 31
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40434V509
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
