Published on 7/7/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.20 million of autocallable securities linked to indexes
By Devika Patel
Knoxville, Tenn., July 7 – HSBC USA Inc. priced $4.20 million of 0% autocallable securities due June 28, 2022 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.
The notes will be called at par plus a premium of 13.2% annualized if each index closes at or above its initial level on any of the quarterly determination dates from June 29, 2018 through June 23, 2022.
If all three indexes finish above their respective initial levels, the payout at maturity will be $1,660 per $1,000 of notes.
The payout will be par if any index falls but all indexes finish above the 70% downside threshold level.
Otherwise, investors will lose 1% for each 1% decline of the worst performing index from its initial level.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable securities
|
| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
|
| Amount: | $4,195,000
|
| Maturity: | June 28, 2022
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | $1,660 per $1,000 of notes if each index gains; par if any index falls but each index finishes at or above downside threshold level; otherwise, 1% loss for each 1% decline of worst performing index from initial level.
|
| Call: | At par plus a premium of 13.2% annualized if each index closes at or above initial level on any of the quarterly determination dates from June 29, 2018 through June 23, 2022
|
| Initial levels: | 2,438.30 for S&P; 1,414.778 for Russell and 3,543.68 for Euro Stoxx
|
| Downside thresholds: | 1,706.81 for S&P; 990.345 for Russell and 2,480.58 for Euro Stoxx, 70% of initial levels
|
| Pricing date: | June 23
|
| Settlement date: | June 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 40435FAF4
|
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