Published on 4/2/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.37 million callable barrier notes with contingent return on indexes
By Wendy Van Sickle
Columbus, Ohio, April 2 – HSBC USA Inc. priced $2.37 million of callable barrier notes with contingent return due March 29, 2028 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.
If each index closes at or above its coupon trigger, 75% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 7.75%.
The notes will be callable at par on any quarterly observation date after one year.
The payout will be par plus the final coupon, if any unless each index has finished below its 55% barrier level, in which case investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable barrier notes with contingent return
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $2,372,000
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| Maturity: | March 29, 2028
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| Coupon: | 7.75% annualized, payable each quarter that each index closes at or above its coupon trigger on the observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon, if any, unless either index has finished below barrier level, in which case investors will lose 1% for each 1% decline of lesser-performing index from its initial level
|
| Call option: | At par on any quarterly observation date after one year
|
| Initial index levels: | 2,658.55 for S&P, 1,543.717 for Russell
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| Coupon triggers: | 1,993.91 for S&P, 1,157.788 for Russell; 75% of initial levels
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| Barriers: | 1,462.2 for S&P, 849.044 for Russell; 55% of initial levels
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| Pricing date: | March 26
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| Settlement date: | March 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40435FVU8
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