Published on 12/26/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8.06 million phoenix quarterly review notes on indexes
By Marisa Wong
Morgantown, W.Va., Dec. 26 – HSBC USA Inc. priced $8.06 million of phoenix quarterly review notes due Dec. 23, 2022 linked to the Russell 2000 index, the MSCI Emerging Markets index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above the 70% coupon barrier on a quarterly observation date, the notes will pay a contingent coupon that quarter at a rate of 8.25% per year.
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.
The payout at maturity will be par plus the contingent coupon unless any index finishes below the 70% trigger level, in which case investors will be fully exposed to the decline of the worst performing index.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC and JPMorgan Chase Bank NA are placement agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix quarterly review notes
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| Underlying indexes: | Russell 2000 index, MSCI Emerging Markets index and Euro Stoxx 50 index
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| Amount: | $8,062,000
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| Maturity: | Dec. 23, 2022
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| Coupon: | 8.25% per year, payable each quarter that each index closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless any index finishes below trigger level, in which case investors will be fully exposed to any losses of worst performing index
|
| Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly observation date
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| Initial levels: | 1,540.076 for Russell, 1,132.85 for MSCI EM and 3,552.65 for Euro Stoxx
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| Coupon barriers: | 1,078.0532 for Russell, 792.995 for MSCI EM and 2,486.855 for Euro Stoxx; 70% of initial levels
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| Trigger levels: | 1,078.0532 for Russell, 792.995 for MSCI EM and 2,486.855 for Euro Stoxx; 70% of initial levels
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| Pricing date: | Dec. 20
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| Settlement date: | Dec. 26
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| Agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank NA as placement agents
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| Fees: | 2.75%
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| Cusip: | 40435FPG6
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