Published on 12/23/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.53 million callable contingent income barrier notes on Stoxx, Russell
By Wendy Van Sickle
Columbus, Ohio, Dec. 23 – HSBC USA Inc. priced $1.53 million of callable contingent income barrier notes due Dec. 20, 2029 linked to the least performing of the Russell 2000 index and Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.75% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that quarter.
The notes are callable quarterly at par after one year.
The payout at maturity will be par unless either index finishes below its 60% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $1,531,000
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| Maturity: | Dec. 20, 2029
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| Coupon: | 7.75%, payable quarterly if each index closes at or above coupon barrier on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing index
|
| Call: | Callable quarterly at par after one year
|
| Initial levels: | 3,745.28 for Stoxx and 1,657.564 for Russell
|
| Coupon barriers: | 2,808.96 for Stoxx and 1,243.173 for Russell; 75% of initial levels
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| Trigger levels: | 2,247.168 for Stoxx and 994.5384 for Russell; 60% of initial levels
|
| Pricing date: | Dec. 17
|
| Settlement date: | Dec. 20
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 40435UV27
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