Published on 12/15/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3 million autocallable barrier notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Dec. 15 – HSBC USA Inc. priced $3 million of autocallable barrier notes with contingent return due Dec. 20, 2027 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 7.35%.
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 Dec. 20, 2018.
The payout at maturity will be par plus the contingent coupon unless either index finishes below the 55% trigger level, 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.
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| 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: | $3 million
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| Maturity: | Dec. 20, 2027
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| Coupon: | 7.35% 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 trigger level, in which case 1% loss for each 1% decline of lesser performing index from initial level
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| Call: | At par if each index closes at or above initial level on any quarterly date Dec. 20, 2018
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| Initial index levels: | 2,662.85 for S&P and 1,524.446 for Russell
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| Barrier levels: | 1,997.14 for S&P and 1,143.335 for Russell; 75% of initial levels
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| Trigger levels: | 1,464.57 for S&P and 838.45 for Russell; 55% of initial levels
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| Pricing date: | Dec. 13
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| Settlement date: | Dec. 18
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.65%
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| Cusip: | 40435FPA9
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