Published on 8/1/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $753,000 callable notes with contingent return on indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 1 – HSBC USA Inc. priced $753,000 of callable notes with contingent return due July 24, 2024 linked to the Russell 2000 index, the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 8.25% if each index closes above its 70% coupon barrier on observation date.
The notes will be callable at par plus any coupon due on any annual payment date.
The payout at maturity will be par plus the final coupon unless any index finishes below its 70% barrier level, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable notes with contingent return
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| Underlying indexes: | S&P 500, Dow Jones industrial average, Russell 2000
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| Amount: | $753,000
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| Maturity: | July 24, 2024
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| Coupon: | 8.25%, payable semiannually if each index closes above 70% of initial level on observation date
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| Price: | Par
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| Payout at maturity: | Par plus 8.25% contingent return payment unless any index finishes below its barrier level, in which case investors will be fully exposed to any losses of the worst performing index
|
| Call: | At par plus any coupon due on any payment date
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| Initial levels: | 2,820.4 for S&P, 1,680.195 for Russell, 25,241.94 for Dow
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| Coupon barrier/barrier: | 1,974.28 for S&P, 1,176.137 for Russell, 17,669.358 for Dow, 70% of initial levels
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| Pricing date: | July 24
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| Settlement date: | July 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40435FP35
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