Published on 3/22/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.71 million trigger autocallable contingent yield notes on S&P 500, Russell
By Wendy Van Sickle
Columbus, Ohio, March 22 – HSBC USA Inc. priced $2.71 million of trigger autocallable contingent yield notes due March 20, 2020 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 pay a contingent quarterly coupon at an annual rate of 8.65% if each index closes at or above its coupon barrier, 70% of its initial level, 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 quarterly observation date beginning Sept. 18, 2017.
The payout at maturity will be par plus the final coupon unless either index finishes below the downside threshold level, 70% of the initial level, in which case investors will lose 1% for every 1% decline of the worse performing index.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000, S&P 500
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| Amount: | $2,705,000
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| Maturity: | March 20, 2020
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| Coupon: | 8.65%, payable quarterly if each index closes at or above coupon barrier on quarterly observation date
|
| Price: | Par of $10
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| Call: | At par if each index closes at or above its initial level on any quarterly observation date beginning Sept. 18, 2017
|
| Payout at maturity: | Par plus final coupon unless either index finishes below downside threshold level, in which case 1% loss for every 1% decline of the worse performing index
|
| Initial levels: | 1,391.524 for Russell and 2,378.25 for S&P
|
| Trigger levels: | 974.067 for Russell, 1,664.78 for S&P; 70% of initial levels
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| Pricing date: | March 17
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| Settlement date: | March 22
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 0%
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| Cusip: | 40435D409
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