Published on 7/3/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.99 million buffered autocallable yield notes tied to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, July 3 – HSBC USA Inc. priced $4.99 million of 0% buffered autocallable yield notes due Dec. 30, 2019 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called semiannually at par plus a 9.5% annualized premium if each index closes at or above its initial level on any semiannual call observation date.
If the notes are not called, the payout at maturity will be par unless either index drops by more than 20%, in which case investors will lose 1.25% for each 1% that the lesser performing index declines beyond 20%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Buffered autocallable yield notes
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Underlying indexes: | Russell 2000 index and S&P 500 index
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Amount: | $4.99 million
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Maturity: | Dec. 30, 2019
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Coupon: | 0%
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Price: | Par
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Call: | At par plus annualized premium of 9.5% if each index closes at or above initial level on any semiannual call observation date
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Payout at maturity: | Par unless either index falls by more than 20%, in which case 1.25% loss for each 1% decline of lesser performing index beyond 20%
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Initial levels: | 2,717.07 for S&P, 1,657.510 for Russell
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Buffer values: | 2,173.656 for S&P, 1,326.008 for Russell; 80% of initial levels
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Pricing date: | June 25
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Settlement date: | June 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.05%
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Cusip: | 40435FN37
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