Published on 7/17/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $265,000 step down trigger autocallables linked to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, July 17 – HSBC USA Inc. priced $265,000 of 0% step down trigger autocallable notes due June 30, 2023 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 be automatically called at par of $10 plus 9.2% per year if each index closes at or above its call threshold level on any annual observation date. For each index, the call threshold level will be equal to the initial index level for the first four observation dates. For the final observation date, the call threshold levels will be 75% of the indexes’ respective initial index levels.
If the notes are not subject to an automatic call, then the final level of at least one index will be less than its downside threshold, 75% of its initial level, and investors will be exposed to the decline of the lesser-performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Step down trigger autocallable notes
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $265,000
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| Maturity: | June 30, 2023
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Full exposure to decline of lesser-performing index from initial level
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| Call: | At par plus 9.2% per year if each index closes at or above its call threshold level on any annual observation date
|
| Initial index levels: | 2,699.63 for S&P 500 and 1,640.454 for Russell 2000
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| Downside thresholds: | 2,024.72 for S&P 500 and 1,230.341 for Russell 2000; 75% of initial levels
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| Call threshold levels: | Equal to initial index levels for first four observation dates, for which call threshold levels will be 75% of initial levels
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| Pricing date: | June 27
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| Settlement date: | June 29
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| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40435X405
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