Published on 4/15/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.06 million contingent income buffered autocalls on stocks
By Wendy Van Sickle
Columbus, Ohio, April 15 – HSBC USA Inc. priced $1.06 million of contingent income buffered autocallable securities due April 14, 2023 linked to the lesser performing of the common stocks of Apple, Inc., Amazon.com, Inc., Morgan Stanley, Johnson & Johnson and Lockheed Martin Corp, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 12.3% per year if each underlier closes at or above its coupon barrier, 70% of its initial level, on the determination date for that period.
Starting in October, the notes will be automatically called at par if each underlier closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless either underlier finishes below its 70% buffer level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines beyond 30%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income buffered autocallable securities
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| Underliers: | Apple, Inc., Amazon.com, Inc., Morgan Stanley, Johnson & Johnson and Lockheed Martin Corp.
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| Amount: | $1,061,000
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| Maturity: | April 14, 2023
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| Coupon: | 12.3% per year, payable monthly if each underlier closes at or above coupon barrier level on determination date
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| Price: | Par
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| Payout at maturity: | Par unless either underlier finishes below buffer level, in which case 1% loss for every 1% that lesser-performing underlier declines beyond buffer
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| Call: | Starting in October, automatically at par if each underlier closes at or above initial level on any quarterly determination date
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| Initial levels: | $266.07 for Apple, $2,043.00 for Amazon.com, $39.37 for Morgan Stanley, $143.26 for Johnson & Johnson and $361.41 for Lockheed Martin
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| Coupon barriers: | $186.249 for Apple, $1,430.10 for Amazon.com, $27.559 for Morgan Stanley, $100.282 for Johnson & Johnson and $252.987 for Lockheed Martin; 70% of initial levels
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| Buffer levels: | $186.249 for Apple, $1,430.10 for Amazon.com, $27.559 for Morgan Stanley, $100.282 for Johnson & Johnson and $252.987 for Lockheed Martin; 70% of initial levels
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| Pricing date: | April 8
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| Settlement date: | April 14
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40438CDN8
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