Published on 8/21/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.56 million callable barrier notes with contingent return on indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 21 – HSBC USA Inc. priced $1.56 million of callable barrier notes with contingent return due Aug. 23, 2022 linked to the least performing of the S&P 500 index, Russell 2000 index and Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annualized rate of 8% if each index closes at or above its 70% coupon trigger on the related quarterly observation date.
The notes will be callable at par on any quarterly call date beginning Aug. 23, 2018.
The payout at maturity will be par plus the contingent coupon, if any, unless any index finishes below its 60% barrier level, in which case investors will be fully exposed to any decline of the least performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $1,557,000
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| Maturity: | Aug. 23, 2022
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| Coupon: | 8% annualized, payable each quarter that each index closes at or above its coupon trigger level on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless any index finishes below barrier level, in which case 1% loss for each 1% decline of least performing index from initial level
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| Call: | At par if each index closes at or above initial level on any quarterly date beginning Aug. 23, 2018
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| Initial index levels: | 2,425.55 for S&P, 1,357.793 for Russell, 3,446.03 for Stoxx
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| Coupon trigger levels: | 1,697.885 for S&P, 950.4551 for Russell, 2,412.221 for Stoxx; 70% of initial levels
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| Barrier levels: | 1,455.33 for S&P, 814.6758 for Russell, 2,067.618; 60% of initial levels
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40435FEJ2
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