Published on 7/11/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $525,000 callable barrier notes linked to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, July 11 – HSBC USA Inc. priced $525,000 of callable barrier notes with contingent return due June 29, 2028 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.
If each index closes at or above its coupon trigger, 75% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 7.35%.
The notes are callable at par on any quarterly observation date beginning July 1, 2019.
In each index finishes at or above its 75% coupon trigger, the payout at maturity will be par plus the final contingent coupon.
The payout will be par if either index declines finishes below the coupon trigger but at or above its 55% barrier level. Otherwise, investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable barrier notes with contingent return
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $525,000
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| Maturity: | June 29, 2028
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| Coupon: | 7.35% annualized, payable each quarter that each index closes at or above its coupon trigger on the observation date for that quarter
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| Price: | Par
|
| Payout at maturity: | If each index finishes at or above coupon trigger, par plus contingent coupon; if either index finishes below coupon trigger but above barrier level, par; otherwise 1% loss for each 1% decline of lesser-performing index from initial level
|
| Call: | Callable at par on any quarterly observation date beginning July 1, 2019
|
| Initial index levels: | 2,723.06 for S&P and 1,668.527 for Russell
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| Coupon triggers: | 2,042.295 for S&P and 1,251.3953 for Russell; 75% of initial levels
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| Barrier levels: | 1,497.683 for S&P and 917.6899 for Russell; 55% of initial levels
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| Pricing date: | June 26
|
| Settlement date: | June 29
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
|
| Cusip: | 40435FE94
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