HSBC to price autocallable barrier notes tied to Euro Stoxx, Russell

By Devika Patel

Knoxville, Tenn., July 14 – HSBC USA Inc. plans to price autocallable barrier notes with contingent return due July 31, 2018 linked to the lesser performing of the Euro Stoxx 50 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of at least 6.25% if each index closes at or above its coupon trigger, 70% of the initial level, on a quarterly observation date. The exact coupon will be set at pricing.

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 on Jan. 26, 2018 and ending on April 30, 2018.

The payout at maturity will be par plus the contingent coupon, if any, unless either index return is negative and either index closes below its 70% barrier level on any day during the life of the notes, in which case investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.

HSBC Securities (USA) Inc. is the agent.

The notes (Cusip: 40435FBS5) will price on July 26 and settle on July 31.

© 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.