Published on 4/29/2016 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $9.58 million trigger autocallable contingent yield notes tied to indexes
By Susanna Moon
Chicago, April 29 – HSBC USA Inc. priced $9.58 million of trigger autocallable contingent yield notes due April 30, 2019 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.25% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any quarterly observation date beginning Oct. 24, 2016.
The payout at maturity will be par unless either index finishes below the 50% downside threshold level, in which case investors will be fully exposed to any losses of the worse performing index.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying indexes: | S&P 500 and Russell 2000
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Amount: | $9,576,770
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Maturity: | April 30, 2019
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Coupon: | 7.25%, payable quarterly if each index closes at or above coupon barrier on quarterly observation date
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Price: | Par of $10
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Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly observation date beginning Oct. 24, 2016
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Payout at maturity: | Par unless either index finishes below downside threshold, in which case full exposure to decline of worse performing index
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Initial levels: | 2,095.15 for S&P, 1,154.149 for Russell
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Barrier levels: | 1,466.61 for S&P, 807.904 for Russell; 70% of initial levels
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Pricing date: | April 27
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Settlement date: | April 29
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40434N325
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