Published on 3/16/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $711,000 5.5% contingent return barrier autocalls on indexes
By Tali Rackner
Minneapolis, March 16 – HSBC USA Inc. priced $711,000 of autocallable barrier notes with contingent return due Aug. 28, 2019 linked to the lesser performing of 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 5.5% if each index closes at or above its 75% coupon trigger 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 call observation date beginning Aug. 23.
The payout at maturity will be par plus the contingent coupon unless either index falls or either index finishes below its 75% trigger level on any day during the life of the notes, in which case investors will be fully exposed to any losses of the lesser-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: | S&P 500, Russell 2000
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| Amount: | $711,000
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| Maturity: | Aug. 28, 2019
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| Coupon: | 5.5% annualized, payable quarterly if each index closes at or above its 75% coupon trigger on review date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless either index finishes negative or either index falls below 75% trigger during life of the notes, in which case full exposure to any losses of lesser-performing index
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| Call: | At par if each index closes at or above initial level on any call observation date beginning Aug. 23
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| Initial levels: | 2,747.30 for S&P, 1,549,186 for Russell
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| Trigger levels: | 2,060.48 for S&P, 1,161.89 for Russell; 75% of initial levels
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40435FSZ1
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