Published on 2/22/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.21 million autocallable barrier notes linked to bank ETF, Russell
By Wendy Van Sickle
Columbus, Ohio, Feb. 22 – HSBC USA Inc. priced $3.21 million of autocallable barrier notes with contingent return due Feb. 26, 2021 linked to the Russell 2000 index and the SPDR S&P Bank 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 11% 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 70% 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: | Russell 2000 index and SPDR S&P Bank ETF
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Amount: | $3,205,000
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Maturity: | Feb. 26, 2021
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Coupon: | 0%
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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 30%, par plus 10%; otherwise, 1% loss for every 1% that least-performing underlier’s final level is less than initial level
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Call: | Automatically at par plus 11% per year if each underlier closes at or above initial level on an annual review date
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Initial level: | 1,399.862 for index and $45.32 for ETF
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Trigger values: | 979.9034 for index and $31.724 for ETF; 70% of initial levels
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Pricing date: | Feb. 17
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Settlement date: | Feb. 27
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 2.15%
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Cusip: | 40433UN28
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