Published on 3/23/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.15 million callable contingent income barrier notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, March 23 – HSBC USA Inc. priced $1.15 million of callable contingent income barrier notes due March 13, 2030 linked to the Dow Jones industrial average, the S&P 500 index, Euro Stoxx 50 index and SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11.65% if each underlying closes at or above the coupon trigger level, 750% of the initial level, on the observation date for that quarter.
The notes will be callable at par plus any coupon due on any quarterly call observation date.
If the notes are not called and each underlying finishes at or above the 60% barrier level, the payout at maturity will be par plus the final coupon, if any. Otherwise, investors will lose 1% for each 1% decline of the least-performing underlying from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
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| Underlying assets: | Dow Jones industrial average, Euro Stoxx 50 index, Russell 2000 index and SPDR S&P Regional Banking ETF
|
| Amount: | $1,146,000
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| Maturity: | March 13, 2030
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| Coupon: | 11.65%, payable quarterly if each underlying closes at or above coupon trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each underlying finishes at or above barrier level, par plus any final coupon; otherwise, 1% loss for each 1% decline of the least-performing underlying from initial level
|
| Call option: | At par plus any coupon on any quarterly call observation date
|
| Initial levels: | 23,553.22 for Dow, 1,264.296 for Russell, 2,905.56 for Stoxx, $36.95 for ETF
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| Coupon trigger: | 17,664.915 for Dow, 948.222 for Russell, 2,179.17 for Stoxx, $27.7125 for ETF, 75% of initial prices
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| Barrier levels: | 14,131.932 for Dow, 758.5776 for Russell, 1,743.336 for Stoxx, $22.17 for ETF, 60% of initial prices
|
| Pricing date: | March 11
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| Settlement date: | March 13
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
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| Cusip: | 40438CAC5
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