New Issue: HSBC sells $5.43 million buffered autocallable yield notes tied to index, ETF

By Devika Patel

Knoxville, Tenn., Jan. 18 – HSBC USA Inc. priced $5.43 million of 0% buffered autocallable yield notes due July 19, 2019 linked to the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called semiannually at par plus a 9.55% annualized premium if each asset closes at or above its initial level on July 16, 2018, Jan. 16, 2019 or July 16, 2019.

If the notes are not called, the payout at maturity will be par unless either asset drops by more than 20%, in which case investors will lose 1.25% for each 1% that the lesser performing asset declines beyond 20%.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Buffered autocallable yield notes
Underlying assets:	Russell 2000 index and iShares MSCI EAFE exchange-traded fund
Amount:	$5,434,000
Maturity:	July 19, 2019
Coupon:	0%
Price:	Par
Call:	At par plus annualized premium of 9.55% if each asset closes at or above initial level on July 16, 2018, Jan. 16, 2019 or July 16, 2019
Payout at maturity:	Par unless either asset falls by more than 20%, in which case 1.25% loss for each 1% decline of lesser performing asset beyond 20%
Initial levels:	1,572.97 for index, $73.43 for ETF
Buffer values:	1,258.376 for index, $58.744 for ETF; 80% of initial levels
Pricing date:	Jan. 16
Settlement date:	Jan. 19
Agent:	HSBC Securities (USA) Inc.
Fees:	0.05%
Cusip:	40435FRP4

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.