Published on 11/2/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.73 million step-down trigger autocallables on S&P 500, Russell
By Susanna Moon
Chicago, Nov. 2 – HSBC USA Inc. priced $2.73 million of 0% step-down trigger autocallable notes due Oct. 31, 2022 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annual call premium of 7.4% if each index closes at or above its initial level on any annual observation date.
The payout at maturity will be par plus 37% unless either index finishes below its 75% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Step down trigger autocallable notes
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $2,725,300
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| Maturity: | Oct. 31, 2022
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above 75% downside threshold, par plus 37%; otherwise, 1% loss for each 1% decline of worse performing index
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| Call: | At par plus 7.4% if each index closes at or above its initial level on any of four annual observation dates after one year
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| Initial levels: | 2,581.07 for S&P, 1,508.316 for Russell
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| Downside thresholds: | 1,935.80 | for S&P, 1,131.237 for Russell; 75% of initial levels
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| Pricing date: | Oct. 27
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| Settlement date: | Oct. 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40435H392
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