Published on 2/23/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $750,000 autocallable barrier notes linked to Dow, Nasdaq
By Kiku Steinfeld
Chicago, Feb. 24 – HSBC USA Inc. priced $750,000 of 0% autocallable barrier notes due Feb. 12, 2025 linked to the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus a call premium of 6.25% per year if each index closes at or above its initial level on any annual observation date.
The payout will be par unless any index has finished below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the lesser performing index from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes
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Underlying indexes: | Dow Jones industrial average and Nasdaq-100 index
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Amount: | $750,000
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Maturity: | Feb. 12, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless any index has finished below barrier level; otherwise, 1% loss for every 1% decline of the lesser performing index from its initial level.
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Call: | Automatically at par plus call premium of 6.25% per year if each index closes at or above initial level on any annual observation date
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Initial levels: | 9,401.098 for Nasdaq and 29,102.51 for Dow
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Barrier levels: | 5,640.6588 for Nasdaq and 17,461.506 for Dow, or 60% of initial levels
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Pricing date: | Feb. 7
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Settlement date: | Feb. 12
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40435U6B5
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