Published on 4/5/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.99 million autocallable barrier notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $6.99 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.
If each index closes at or above its coupon barrier, 70% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 7.25%.
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 Sept. 26, 2017.
The payout at maturity will be par plus the contingent coupon unless either index closes below the 70% trigger level on any day during the life of the notes and either index finishes below its initial 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: | $6,986,000
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| Maturity: | March 29, 2018
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| Coupon: | 7.75% annualized, payable each quarter that each index closes at or above its barrier level on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless either index finishes below initial level and either index ever closes below trigger level during life of notes, 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 Sept. 26, 2017
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| Initial levels: | 2,358.57 for S&P 500, 1,367.261 for Russell 2000
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| Trigger/barrier levels: | 1,650.999 for S&P, 957.0827 for Russell; 70% of initial levels
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| Pricing date: | March 28
|
| Settlement date: | March 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.35%
|
| Cusip: | 40433UV86
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