Published on 6/23/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $8.88 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, June 23 – HSBC USA Inc. priced $8.88 million of trigger callable contingent yield notes with daily coupon observation due June 29, 2020 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.1% if each index’s closing level is at least 70% of its initial level on each trading day for that quarter.
The notes will be callable in whole but not in part on any quarterly observation date other than the final one at par of $10 plus any coupon.
If the notes are not called and each index finishes at or above its 60% downside threshold level, the payout at maturity will be par plus the final coupon. 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.
|
| Issue: | Trigger callable contingent yield notes with daily coupon observation
|
| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
|
| Amount: | $8,884,000
|
| Maturity: | June 29, 2020
|
| Coupon: | 9.1% per year, payable quarterly if each index closes at or above its coupon barrier level on each trading day for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus the final coupon unless either index finishes below downside threshold level, in which case 1% loss for each 1% decline of worst performing index
|
| Call option: | At par plus any coupon on any quarterly observation other than final date
|
| Initial levels: | 2,435.61 for S&P, 1,399.255 for Russell, 3,554.35 for Stoxx
|
| Coupon barrier levels: | 1,704.93 for S&P, 979.79 for Russell, 2,488.05 for Stoxx; 70% of initial levels
|
| Downside thresholds: | 1,461.37 for S&P, 839.533 for Russell, 2,132.61 for Stoxx; 60% of initial levels
|
| Pricing date: | June 21
|
| Settlement date: | June 28
|
| Agent: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 40435D169
|
|
|
© 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.
