Published on 4/17/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.78 million autocallable yield notes on S&P 500, Russell
By Marisa Wong
Morgantown, W.Va., April 17 – HSBC USA Inc. priced $2.78 million of 6.85% autocallable yield notes due July 3, 2019 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.
Interest is payable monthly.
Beginning Sept. 28, the notes will be called at par of $1,000 plus the interest payment if each index closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final interest payment unless either index closes below its 70% trigger level on any day during the life of the notes and either index finishes below its initial level, in which case investors will lose 1% for each 1% decline of the worst performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $2,779,000
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| Maturity: | July 3, 2019
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| Coupon: | 6.85%, payable monthly
|
| Price: | Par
|
| Call: | Automatically at par plus coupon if each index closes at or above initial level on a quarterly observation date beginning Sept. 28
|
| Payout at maturity: | Par plus coupon unless either index finishes below its initial level and either closes below trigger level on any day during life of notes, in which case full exposure to decline of lesser performing index
|
| Initial levels: | 2,605.00 for S&P and 1,513.031 for Russell
|
| Trigger levels: | 1,823.50 for S&P and 1,059.1217 for Russell; 70% of initial levels
|
| Pricing date: | March 28
|
| Settlement date: | April 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40435FVN4
|
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