Published on 5/9/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.54 million market-linked autocallables on three indexes
By Wendy Van Sickle
Columbus, Ohio, May 9 – HSBC USA Inc. priced $1.54 million of market-linked securities – autocallable with contingent coupon and contingent downside – due April 28, 2022 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6.35% if each index closes at or above its 65% coupon trigger on the related quarterly observation date.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning Oct. 24, 2018.
The payout at maturity will be par unless any index finishes below its 65% barrier level, in which case the payout will be par plus the return of the worst performing index with full exposure to any losses.
HSBC Securities (USA) Inc. and Wells Fargo Securities LLC are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Market-linked securities – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $1,539,000
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| Maturity: | April 28, 2022
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| Coupon: | 6.35% annualized, payable each quarter that each index closes at or above its coupon trigger on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless any index falls by more than 35%, in which case 1% loss per 1% decline of worst performing index
|
| Call: | At par if each index closes at or above its initial level on any quarterly observation date beginning Oct. 24, 2018
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| Initial levels: | 2,669.91 for S&P, 1,556.236 for Russell and 3,518.78 for Stoxx
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| Coupon triggers: | 1,735.4415 for S&P, 1,011.5534 for Russell and 2,287.207 for Stoxx; 65% of initial levels
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| Barrier levels: | 1,735.4415 for S&P, 1,011.5534 for Russell and 2,287.207 for Stoxx; 65% of initial levels
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| Pricing date: | April 27
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| Settlement date: | May 2
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| Agents: | HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
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| Fees: | 2.2%
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| Cusip: | 40435FYD3
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