Published on 3/20/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $19.35 million trigger autocallable contingent yield notes on Nasdaq, S&P
By Sarah Lizee
Olympia, Wash., March 20 – HSBC USA Inc. priced $19.35 million of trigger autocallable contingent yield notes due March 18, 2030 linked to the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if each asset closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par of $10 if each asset closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par plus the final coupon unless either asset finishes below the downside threshold level, 50% of its initial level, in which case investors will lose 1% for every 1% loss of the worse performing asset from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | S&P 500 index and Nasdaq-100 index
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| Amount: | $19,354,900
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| Maturity: | March 18, 2030
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| Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier on quarterly observation date
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| Price: | Par of $10
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| Call: | At par if both indexes close at or above initial levels on any quarterly observation date
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| Payout at maturity: | Par unless either index finishes below downside threshold, in which case 1% loss for each 1% decline of worse performing index
|
| Initial index levels: | 7,995.263 for Nasdaq, 2,711.02 for S&P
|
| Coupon barriers: | 5,596.684 for Nasdaq, 1,897.71 for S&P; 70% of initial levels
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| Downside thresholds: | 3,997.632 for Nasdaq, 1,355.51 for S&P; 50% of initial levels
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| Pricing date: | March 13
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| Settlement date: | March 18
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40438J866
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