Published on 5/23/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.2 million autocallable barrier notes linked to oil ETF, S&P 500
By Angela McDaniels
Tacoma, Wash., May 23 – HSBC USA Inc. priced $3.2 million of 0% autocallable barrier notes with contingent return due May 27, 2020linked to the S&P 500 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus 15% per year if each underlier closes at or above its initial level on May 24, 2017, May 23, 2018, May 22, 2019 or May 21, 2020.
If the notes are not called and the final return of the least-performing underlier is less than zero but greater than or equal to negative 40%, the payout at maturity will be par plus 10%. Otherwise, investors will lose 1% for every 1% that the least-performing underlier’s final level is less than its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with contingent return
|
| Underliers: | S&P 500 index and SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $3,195,000
|
| Maturity: | May 27, 2020
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final return of least-performing underlier is less than zero but greater than or equal to negative 40%, par plus 10%; otherwise, 1% loss for every 1% that least-performing underlier’s final level is less than initial level
|
| Call: | Automatically at par plus 15% per year if each underlier closes at or above initial level on May 24, 2017, May 23, 2018, May 22, 2019 or May 21, 2020
|
| Initial level: | 2,052.32 for index and $34.44 for ETF
|
| Trigger values: | 1,231.39 for index and $20.66 for ETF; 60% of initial levels
|
| Pricing date: | May 20
|
| Settlement date: | May 27
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 2.15%
|
| Cusip: | 40433ULN4
|
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