Published on 12/11/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.01 million 6% contingent return barrier autocalls on Russell, S&P
By Susanna Moon
Chicago, Dec. 11 – HSBC USA Inc. priced $2.01 million of autocallable barrier notes with contingent return due Nov. 30, 2027 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 pay a contingent quarterly coupon at an annual rate of 6% if each index closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly review date after one year.
The payout at maturity will be par plus the contingent coupon unless either index finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $2,012,000
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| Maturity: | Nov. 30, 2027
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| Coupon: | 6% annualized, payable quarterly if each index closes at or above 75% coupon barrier on review date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either index falls below 60% trigger, in which case full exposure to any losses of worse performing index
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| Call: | At par if each index closes at or above its initial level on any quarterly review date beginning Nov. 27, 2018
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| Initial levels: | 2,601.42 for S&P and 1,513.309 for Russell
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| Coupon barriers: | 1,951.07 for S&P and 1,134.982 for Russell, 75% of initial levels
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| Trigger levels: | 1,560.85 for S&P and 907.985 for Russell, 60% of initial levels
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| Pricing date: | Nov. 27
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| Settlement date: | Nov. 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
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| Cusip: | 40435FLA3
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