Published on 4/22/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $347,000 autocallable securities with contingent coupon on three indexes
By Wendy Van Sickle
Columbus, Ohio, April 22 – HSBC USA Inc. priced $347,000 of autocallable securities with contingent coupon and contingent downside due April 22, 2024 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 11.5% per year if each index closes at or above its coupon trigger, 75% of its initial level, on the observation date for that quarter.
Beginning Oct. 17, the notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.
The payout at maturity will be par unless any index finishes below its 75% barrier level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable securities with contingent coupon and contingent downside
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Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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Amount: | $347,000
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Maturity: | April 22, 2024
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Coupon: | 11.5% per year, payable quarterly if each index closes at or above coupon trigger on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any index finishes below barrier level, in which case 1% loss for every 1% that least-performing index declines from initial level
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Call: | Beginning Oct. 17, automatically at par if each index closes at or above initial level on any quarterly call observation date
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Initial levels: | 2,874.56 for S&P, 1,229.098 for Russell and 2,888.3 for Stoxx
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Coupon triggers: | 2,155.92 for S&P, 921.8235 for Russell and 2,166.225 for Stoxx, or 75% of initial levels
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Barrier levels: | 2,155.92 for S&P, 921.8235 for Russell and 2,166.225 for Stoxx, or 75% of initial levels
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Pricing date: | April 17
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Settlement date: | April 22
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.175%
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Cusip: | 40438CDZ1
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