Published on 10/19/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.37 million 9.15% contingent return autocalls on Russell, S&P, Stoxx
By Susanna Moon
Chicago, Oct. 19 – HSBC USA Inc. priced $4.37 million of autocallable barrier notes with contingent return due Sept. 28, 2028 linked to the least performing of the Euro Stoxx 50 index, 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 9.15% if each underlying index closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any review date after one year.
The payout at maturity will be par unless any underlying index finishes below its 75% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index and S&P 500 index
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| Amount: | $4,373,000
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| Maturity: | Sept. 28, 2028
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| Coupon: | 9.15% annualized, payable quarterly if each index closes at or above its 75% coupon barrier on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any asset falls below 75% trigger, in which case full exposure to losses of worst performing index
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| Call: | At par if each index closes at or above its initial level on any review date beginning Sept. 25, 2019
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| Initial levels: | 3,419.78 for Stoxx, 1,708.805 for Russell and 2,915.56 for S&P
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| Trigger levels: | 2,564.835 for Stoxx, 1,281.60375 for Russell and 2,186.67 for S&P, 75% of initial levels
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4.5%
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| Cusip: | 40435F3F2
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