Published on 5/2/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $662,000 autocallable yield notes tied to S&P 500, Russell
By Wendy Van Sickle
Columbus, Ohio, May 2 – HSBC USA Inc. priced $662,000 of 7% autocallable yield notes due July 31, 2018 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Beginning Oct. 26, 2017, the notes will be called at par of $1,000 plus the interest payment if each index closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final interest payment unless either index closes below its 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 lose 1% for each 1% decline of the worst performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $662,000
|
| Maturity: | July 31, 2018
|
| Coupon: | 7%, payable monthly
|
| Price: | Par
|
| Call: | After six months, quarterly at par plus coupon if each index closes above initial level on a quarterly observation date
|
| Payout at maturity: | Par plus coupon unless either index finishes below its initial level and either closes below 70% trigger level any day during life of notes, in which case full exposure to decline of lesser performing index
|
| Initial levels: | 2,388.61 for S&P 500, 1,411.077 for Russell 2000
|
| Trigger levels: | 1,672.027 for S&P, 987.7539 for Russell; 70% of initial levels
|
| Pricing date: | April 25
|
| Settlement date: | April 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40433U2X3
|
|
|
© 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.
