Published on 11/15/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.85 million 8.7% contingent yield trigger callables tied to indexes
By Susanna Moon
Chicago, Nov. 15 – HSBC USA Inc. priced $3.85 million of trigger callable contingent yield notes due May 12, 2021 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.7% if each index closes at or above its 70% coupon barrier on each trading day for that quarter.
The notes are callable at par on any quarterly determination date other than the final date.
The payout at maturity will be par plus the contingent coupon unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $3.85 million
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| Maturity: | May 12, 2021
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| Coupon: | 8.7% per year, payable quarterly if each index closes at or above 70% coupon barrier on each trading day for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, full exposure to decline of worst performing index
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| Call option: | At par on each quarterly observation date other than final date
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| Initial levels: | 2,590.64 for S&P, 1,479.091 for Russell and 3,658.77 for Stoxx
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| Coupon barriers: | 1,813.45 for S&P, 1,035.364 for Russell and 2,561.14 for Stoxx; 70% of initial levels
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| Downside thresholds: | 1,554.38 for S&P, 887.455 for Russell and 2,195.26 for Stoxx; 60% of initial levels
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| Pricing date: | Nov. 7
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| Settlement date: | Nov. 10
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40435H186
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