Published on 10/10/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $10.41 million trigger autocallables linked to S&P, Russell
By Angela McDaniels
Tacoma, Wash., Oct. 10 – HSBC USA Inc. priced $10.41 million of 0% trigger autocallable notes due Oct. 11, 2019 linked to a basket that contains equal weights of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning April 5, 2018, the notes will be automatically called at par of $10 plus 7% per year if the basket closes at or above its initial level on any quarterly call observation date.
If the notes are not called and the final basket level is greater than or equal to the downside threshold, 85% of the initial basket level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final basket level is below the initial basket level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable notes
|
| Underlying indexes: | S&P 500 and Russell 2000, equally weighted
|
| Amount: | $10,412,430
|
| Maturity: | Oct. 11, 2019
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If notes are not called and final basket level is greater than or equal to downside threshold, par; otherwise, 1% loss for every 1% that final basket level is below initial basket level
|
| Call: | Beginning April 5, 2018, notes will be automatically called at par plus 7% per year if basket closes at or above initial level on any quarterly call observation date
|
| Initial index levels: | 1,512.088 for Russell 2000 and 2,552.07 for S&P 500
|
| Downside threshold: | 85% of initial basket level
|
| Pricing date: | Oct. 5
|
| Settlement date: | Oct. 11
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40435H442
|
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