Published on 6/13/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $9.67 million trigger callable contingent yield notes linked to three indexes
By Wendy Van Sickle
Columbus, Ohio, June 13 – HSBC USA Inc. priced $9.67 million of trigger callable contingent yield notes due June 16, 2020 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 8.7% per year if each index closes at or above its coupon barrier, 65% of its initial level, on the observation date for that quarter.
The notes are callable at par of $10 on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its downside threshold level, 65% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $9,666,900
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| Maturity: | June 16, 2020
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| Coupon: | 8.7% per year, payable quarterly if each index closes at or above coupon barrier level on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold level, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | At par on each quarterly observation date other than final one
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| Initial levels: | 1,421,707 for Russell 2000, 2,413.77 for S&P 500 and 3,586.07 for Euro Stoxx 50
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| Barriers/thresholds: | 924.110 for Russell 2000, 1,580.65 for S&P 500 and 2,330.95 for Euro Stoxx 50; 65% of initial levels
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| Pricing date: | June 9
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| Settlement date: | June 16
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40435D292
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