Published on 3/17/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $560,000 contingent income barrier autocalls on stocks
By Wendy Van Sickle
Columbus, Ohio, March 17 – HSBC USA Inc. priced $560,000 of autocallable contingent income barrier notes due Sept. 7, 2021 linked to the common stocks of Apple Inc., AT&T Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.1% if each stock closes at or above the coupon trigger level, 55% of the initial level, on the observation date for that quarter.
After six months, the notes will be called at par plus the coupon if each stock closes at or above the initial price on any quarterly observation date other than the final one.
If the notes are not called and each stock finishes at or above the 55% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Apple Inc., AT&T Inc. and Microsoft Corp.
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| Amount: | $560,000
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| Maturity: | Sept. 7, 2021
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| Coupon: | 8.1% plus any previously unpaid coupons, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus final coupon; otherwise, 1% loss for each 1% decline of least-performing stock from initial level
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| Call: | After six months at par plus coupon if each stock closes at or above initial price on any quarterly observation date other than final one
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| Initial levels: | $289.32 for Apple, $36.30 for AT&T, $164.51 for Microsoft
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| Coupon trigger/barriers: | $159.126 for Apple, $19.965 for AT&T, $90.4805 for Microsoft, 55% of initial prices
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| Pricing date: | March 3
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| Settlement date: | March 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40438CBS9
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