Published on 4/2/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $7.3 million contingent income autocalls on Alphabet, Apple, Microsoft
By Kiku Steinfeld
Chicago, April 2 – HSBC USA Inc. priced $7.3 million of autocallable contingent income securities due March 16, 2023 linked to the common stocks of Microsoft Corp., Alphabet Inc. and Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 13% per year if each stock closes at or above its coupon barrier, 60% of its initial share price, on a related observation date.
The notes will be automatically called at par of $10 plus the contingent coupon if both stocks close at or above their initial share prices on any quarterly observation date other than the final one.
If each stock finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final contingent coupon. If either stock finishes below its downside threshold level, investors will lose 1% for every 1% that the lesser-performing stock declines from its initial share price.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is acting as distributor.
Issuer: | HSBC USA Inc.
|
Issue: | Autocallable contingent income securities
|
Underlying stocks: | Microsoft Corp., Alphabet Inc. and Apple Inc.
|
Amount: | $7,300,000
|
Maturity: | March 16, 2023
|
Coupon: | 13% per year, payable quarterly if stocks close at or above coupon barrier on related observation date
|
Price: | Par of $10
|
Payout at maturity: | If each stock finishes at or above downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that lesser-performing stock declines from initial share price
|
Call: | Automatically at par plus contingent coupon if each stock closes at or above initial share price on any quarterly observation date other than final one
|
Initial share prices: | $158.83 for Microsoft, $1,214.27 for Alphabet, $277.97 for Apple
|
Coupon barriers: $95.298 for Microsoft, $728.562 for Alphabet, $95.298 for Apple, 60% of initial share price
|
Downside thresholds: | $95.298 for Microsoft, $728.562 for Alphabet, $95.298 for Apple, 60% of initial share price
|
Pricing date: | March 13
|
Settlement date: | March 18
|
Agent: | HSBC Securities (USA) Inc.
|
Distributor: | Morgan Stanley Wealth Management
|
Fees: | 2.5%
|
Cusip: | 40438J841
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.