Published on 11/21/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.08 million contingent income barrier autocallables on three indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 21 – HSBC USA Inc. priced $2.08 million of autocallable contingent income barrier notes due Nov. 20, 2024 linked to the least performing of the Russell 2000 index, Euro Stoxx Banks index and Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 8.5% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date that month.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly call observation date after one year.
The payout at maturity will be par plus the final coupon, if any, unless any 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: | Autocallable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Euro Stoxx Banks index and Dow Jones industrial average
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| Amount: | $2,084,000
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| Maturity: | Nov. 20, 2024
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| Coupon: | 8.5%, payable monthly if each index closes at or above coupon barrier on observation date that month
|
| Price: | Par
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| Payout at maturity: | Par plus the final coupon, if any, unless any index finishes below its trigger level, in which case investors will be fully exposed to the decline of the lowest performing index
|
| Call: | At par plus coupon if each index closes at or above initial level on any quarterly call observation date after one year
|
| Initial levels: | 93.65 for Stoxx, 1,596.454 for Russell and 28,004.89 for Dow
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| Coupon barriers: | 565.555 for Stoxx, 1,117.5178 for Russell and 19,603.423 for Dow; 70% of initial levels
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| Trigger levels: | 56.19 for Stoxx, 957.8724 for Russell and 16,802.934 for Dow; 60% of initial levels
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| Pricing date: | Nov. 15
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| Settlement date: | Nov. 20
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.625%
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| Cusip: | 40435UJ70
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