Published on 5/4/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.95 million 8% contingent return callables tied to Russell, S&P 500
By Susanna Moon
Chicago, May 4 – HSBC USA Inc. priced $1.95 million of callable barrier notes with contingent return due April 28, 2028 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8% if each underlying index closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes are callable at par on any review date after one year.
The payout at maturity will be par plus 10% unless either index finishes below its 55% trigger level, in which case investors will be fully exposed to any losses of the worse performing index.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable barrier notes with contingent return
|
| Underlying assets: | Russell 2000 index and S&P 500 index
|
| Amount: | $1,949,000
|
| Maturity: | April 28, 2028
|
| Coupon: | 8% annualized, payable quarterly if each index closes at or above its 75% coupon barrier on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either asset falls below 55% trigger, in which case full exposure to any losses of worse performing index
|
| Call option: | At par on any review date beginning April 24, 2019
|
| Initial levels: | 1,550.467 for Russell and 2,639.40 for S&P
|
| Trigger levels: | 1,162.85 for Russell and 1,979.55 for S&P, 75% of initial levels
|
| Trigger levels: | 852.75685 for Russell and 1,451.67 for S&P, 55% of initial levels
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.75%
|
| Cusip: | 40435FYH4
|
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