Published on 6/21/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.25 million autocallable barrier notes linked to oil ETF, S&P 500
By Wendy Van Sickle
Columbus, Ohio, June 21 – HSBC USA Inc. priced $2.25 million of autocallable barrier notes with contingent return due June 24, 2020 linked 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 called at par plus a call premium of 15% a year if each underlier closes at or above its initial level on any annual observation date.
The payout at maturity will be par plus a contingent payment of 10% unless either underlier closes below 60% of its initial value, in which case investors will be fully exposed to the loss of the worse performing underlier.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underliers: | S&P 500 index and SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $2,253,000
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| Maturity: | June 24, 2020
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| Coupon: | 0%
|
| Price: | Par
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| 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 June 21, 2017, June 20, 2018, June 19, 2019 or June 19, 2020
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| Initial level: | 2,071.22 for index and $35.02 for ETF
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| Trigger values: | 1,242.73 for index and $21.01 for ETF; 60% of initial levels
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| Pricing date: | June 17
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| Settlement date: | June 24
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 2.15%
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| Cusip: | 40433UND4
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