Published on 6/5/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $280,000 autocallable return notes linked to S&P oil and gas index
By Wendy Van Sickle
Columbus, Ohio, June 5 – HSBC USA Inc. priced $280,000 of 0% autocallable return notes due June 12, 2019 linked to the S&P Oil & Gas Exploration & Production Select Industry index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called if the index closes at or above its initial level on Sept. 16, 2018, Nov. 21, 2018, Feb. 21, 2019 and June 7, 2019. The redemption price is par plus a call premium of at an annual rate of 13.35%.
If the notes are not called, the payout at maturity will be par unless the index finishes below the 70% trigger level, in which case investors will be fully exposed to the decline.
The final calculation of the index level will be based on the average of the closing levels on June 3, June 4, June 5, June 6 and June 7, 2019.
HSBC Securities (USA) Inc. is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable return notes
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| Underlying index: | S&P Oil & Gas Exploration & Production Select Industry
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| Amount: | $280,000
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| Maturity: | June 12, 2019
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless index finishes below trigger level, in which case 1% loss for every 1% that index declines from initial level
|
| Call: | Automatically at par plus call premium of 13.35% a year if index closes at or above initial level on Sept. 16, 2018, Nov. 21, 2018, Feb. 21, 2019 and June 7, 2019
|
| Initial index level: | 6,214.75
|
| Trigger level: | 4,350.325, 65.94% of initial level
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| Final level: | Average of the closing levels on June 3, June 4, June 5, June 6 and June 7, 2019
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| Pricing date: | May 25
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| Settlement date: | May 31
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| Underwriter: | HSBC Securities (USA) Inc.
|
| Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40435FF44
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