Published on 11/2/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $814,000 of autocallable barrier notes tied to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Nov. 2 – HSBC USA Inc. priced $814,000 of autocallable barrier notes with contingent return due Feb. 1, 2019 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its coupon barrier, 75% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 6.3%.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date beginning Oct. 29, 2018.
The payout at maturity will be par plus the contingent coupon unless either index finishes below the initial level and either index closes below the 75% trigger level any day during the life of the notes, in which case investors will lose 1% for each 1% decline of the worse performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with contingent return
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $814,000
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| Maturity: | Feb. 1, 2019
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| Coupon: | 6.3% annualized, payable each quarter that each index closes at or above its barrier 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 either index finishes below initial level and either closes below trigger level during life of notes, in which case 1% loss for each 1% decline of lesser performing index from initial level
|
| Call: | At par if each index closes at or above initial level on any quarterly date beginning Oct. 29, 2018
|
| Initial index levels: | 2,496.84 for S&P, 1,456.863 for Russell
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| Barrier levels: | 1,935.80 for S&P, 1,131.237 for Russell; 75% of initial levels
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| Trigger levels: | 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: | Nov. 1
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40435FJN8
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