New Issue: HSBC prices $20.26 million contingent income callables on three indexes

By Wendy Van Sickle

Columbus, Ohio, July 25 – HSBC USA Inc. priced $20.26 million of contingent income callable securities due Jan. 24, 2020 linked to the worst 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 an annual rate of 9.65% if each index closes at or above its coupon barrier level, 75% of its initial index level, on each day during that quarter.

The notes are callable at HSBC’s option at par on any quarterly determination date beginning on Jan. 22, 2018.

If each index finishes at or above its 70% downside threshold level, the payout at maturity will be par plus the final contingent coupon, if any. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.

Issuer:	HSBC USA Inc.
Issue:	Contingent income callable securities
Underlying indexes:	Euro Stoxx 50, Russell 2000 and S&P 500
Amount:	$20.26 million
Maturity:	Jan. 24, 2020
Coupon:	9.65% per year, payable quarterly if each index closes at or above coupon barrier on each day during that quarter
Price:	Par
Payout at maturity:	If each index finishes at or above downside threshold level, par plus final contingent coupon, if any; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
Call option:	At par on any quarterly determination date beginning Jan. 22, 2018
Initial levels:	2,472.54 for S&P, 1,435.839 for Russell and 3,451.71 for Stoxx
Coupon barriers:	1,854.41 for S&P, 1,076.879 for Russell and 2,588.78 for Stoxx; 75% of initial levels
Downside thresholds:	1,730.778 for S&P, 1,005.0873 for Russell and 2,416.20 for Stoxx; 70% of initial levels
Pricing date:	July 21
Settlement date:	July 26
Agent:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Wealth Management
Fees:	2%
Cusip:	40435FCH8

© 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.