Published on 4/17/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $26,000 dual directional barrier notes tied to Russell, S&P
By Wendy Van Sickle
Columbus, Ohio, April 17 – HSBC USA Inc. priced $26,000 of 0% dual directional barrier securities due April 17, 2024 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final level of each index is greater than its initial level, the payout at maturity will be par of the lesser-performing index’s return, capped at par plus 42.65%.
If the final level of either index is less than or equal to its initial level but neither underlying finishes below its trigger value, 75% of its initial level, the payout will be par plus the absolute value of the lesser-performing underlying’s return.
If either index finishes below its trigger value, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
|
Issue: | Dual directional barrier securities
|
Underlying indexes: | S&P 500 and Russell 2000
|
Amount: | $26,000
|
Maturity: | April 17, 2024
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | If each index finishes at or above initial level, par plus the lesser-performing index’s return, capped at par plus 42.65%; if lesser-performing index falls by up to 25%, par plus absolute value of its return; otherwise, 1% loss for every 1% that lesser-performing index’s final level is less than initial level
|
Initial levels: | 2,846.06 for S&P 500, 1,237.333 for Russell 2000
|
Trigger levels: | 2,134.545 for S&P 500, 927.9998 for Russell 2000, 75% of initial levels
|
Pricing date: | April 14
|
Settlement date: | April 17
|
Underwriter: | HSBC Securities (USA) Inc.
|
Fees: | 2.25%
|
Cusip: | 40438CDG3
|
|
© 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.