New Issue: HSBC prices $3.21 million autocallable barrier notes linked to bank ETF, Russell

By Wendy Van Sickle

Columbus, Ohio, Feb. 22 – HSBC USA Inc. priced $3.21 million of autocallable barrier notes with contingent return due Feb. 26, 2021 linked to the Russell 2000 index and the SPDR S&P Bank exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will called at par plus a call premium of 11% a year if each underlier closes at or above its initial level on any annual observation date.

The payout at maturity will be par plus a contingent payment of 10% unless either underlier closes below 70% of its initial value, in which case investors will be fully exposed to the loss of the worse performing underlier.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable barrier notes with contingent return
Underliers:	Russell 2000 index and SPDR S&P Bank ETF
Amount:	$3,205,000
Maturity:	Feb. 26, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	If final return of least-performing underlier is less than zero but greater than or equal to negative 30%, par plus 10%; otherwise, 1% loss for every 1% that least-performing underlier’s final level is less than initial level
Call:	Automatically at par plus 11% per year if each underlier closes at or above initial level on an annual review date
Initial level:	1,399.862 for index and $45.32 for ETF
Trigger values:	979.9034 for index and $31.724 for ETF; 70% of initial levels
Pricing date:	Feb. 17
Settlement date:	Feb. 27
Underwriter:	HSBC Securities (USA) Inc.
Fees:	2.15%
Cusip:	40433UN28

© 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.