Published on 12/23/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.12 million autocallable barrier notes on S&P 500, Russell 2000
By Wendy Van Sickle
Columbus, Ohio, Dec. 23 – HSBC USA Inc. priced $1.12 million of autocallable barrier notes with contingent return due March 29, 2018 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 6% if each index closes at or above its coupon trigger, 70% of the initial level, on a quarterly observation date.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date beginning June 26, 2017
The payout at maturity will be par plus the contingent coupon unless either index finishes below the 70% 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: | Autocallable barrier notes with contingent return
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $1,124,000
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| Maturity: | March 29, 2018
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| Coupon: | 6% annualized, payable quarterly if each index closes at or above its 70% coupon trigger level on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless either index finishes below 70% barrier level, in which case full exposure to any losses of lesser performing index
|
| Call: | At par if each index closes at or above initial level on any quarterly date beginning June 26, 2017
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| Initial levels: | 2,265.18 for S&P, 1,375.193 for Russell
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| Trigger/barrier levels: | 1,585.626 for S&P, 962.6351 for Russell; 70% of initial levels
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| Pricing date: | Dec. 21
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| Settlement date: | Dec. 27
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| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 1.625%
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| Cusip: | 40433UD37
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