Published on 11/8/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.54 million of callable notes with contingent return on two indexes
By Marisa Wong
Morgantown, W.Va., Nov. 8 – HSBC USA Inc. priced $3.54 million of callable notes with contingent return due Nov. 9, 2021 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 7.1% if each index closes at or above the 60% coupon trigger level on a quarterly observation date.
The notes will be callable quarterly after one year.
The payout at maturity will be par plus the final contingent coupon, if any, unless either index finishes below its 50% barrier level, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $3,538,000
|
| Maturity: | Nov. 9, 2021
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| Coupon: | 7.1%, payable quarterly if each index closes at or above coupon trigger level on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless either index finishes below barrier level, in which case full exposure to any losses of worse performing index
|
| Call option: | At par on any quarterly call date after one year
|
| Initial levels: | 2,085.18 for S&P and 1,163.439 for Russell
|
| Coupon trigger levels: | 1,251.108 for S&P and 698.0634 for Russell; 60% of initial levels
|
| Barrier levels: | 1,042.59 for S&P and 581.7195 for Russell; 50% of initial level
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 9
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40433UZU3
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