Published on 12/17/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $13.45 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 17 – HSBC USA Inc. priced $13.45 million of 0% autocallable barrier notes with step-up premium and step-down call threshold due Dec. 17, 2024 linked to the lesser performing of the FTSE 100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each index closes at or above its initial level on any of the first five quarterly observation dates or 95% of its initial level on any quarterly observation date starting on June 14, 2021. The call premium is 10% per year.
The payout will be par plus the 10% contingent return unless any index has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium and step-down call threshold
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| Underlying indexes: | FTSE 100, Russell 2000
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| Amount: | $13.45 million
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| Maturity: | Dec. 17, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 10% unless either index has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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| Call: | At par plus a call premium if each index closes at or above its initial level on any of the first five quarterly observation dates or 95% of its initial level on any quarterly observation date starting on June 14, 2021; call premium is 10% per year
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| Initial index levels: | 7,273.47 for FTSE, 1,644.813 for Russell
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| Barrier levels: | 5,091.429 for FTSE, 1,151.3691 for Russell; 70% of initial levels
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| Pricing date: | Dec. 12
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| Settlement date: | Dec. 17
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.85%
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| Cusip: | 40435UU44
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