Published on 9/29/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.2 million step down trigger autocallables linked to Euro Stoxx, Russell
By Wendy Van Sickle
Columbus, Ohio, Sept. 29 – HSBC USA Inc. priced $4.2 million of 0% step down trigger autocallable notes due Sept. 29, 2022 linked to the lesser performing of 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 automatically called at par of $10 plus 10.5% per year if each index closes at or above its call threshold level on any annual observation date. For each index, the call threshold level will be equal to the initial index level for every observation date except for the final observation date, Sept. 26, 2022. For the final observation date, the call threshold levels will be 70% of the indexes’ respective initial index levels.
If the notes are not subject to an automatic call, then the final level of at least one index will be less than its downside threshold, 70% of its initial level, and investors will be exposed to the decline of the lesser-performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Step down trigger autocallable notes
|
| Underlying indexes: | Russell 2000 and Euro Stoxx 50
|
| Amount: | $4.2 million
|
| Maturity: | Sept. 29, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Full exposure to decline of lesser-performing index from initial level
|
| Call: | At par plus 10.5% per year if each index closes at or above its call threshold level on any annual observation date
|
| Initial index levels: | 3,536.38 for Euro Stoxx 50 and 1,456.863 for Russell 2000
|
| Downside thresholds: | 2,475.466 for Euro Stoxx 50 and 1,019.804 for Russell 2000; 70% of initial levels
|
| Call threshold levels: | Equal to initial index levels for every observation date except for final observation date, Sept. 26, 2022, for which call threshold levels will be 70% of initial levels
|
| Pricing date: | Sept. 26
|
| Settlement date: | Sept. 29
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40435G121
|
|
|
© 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.
