Published on 5/1/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.18 million barrier enhanced participation notes linked to Dow, Russell
By Sarah Lizee
Olympia, Wash., May 1 – HSBC USA Inc. priced $1.18 million of 0% barrier enhanced participation notes due April 30, 2025 linked to the lesser performing of the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the return of each index is positive, the payout at maturity will be par plus 150% of the lesser-performing index’s return. If the return of the lesser-performing index is less than or equal to zero but greater than or equal to negative 40%, the payout will be par. If the return of either index is less than negative 40%, 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.
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Issue: | Barrier enhanced participation notes
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Underlying indexes: | Dow Jones industrial average and Russell 2000
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Amount: | $1,184,000
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Maturity: | April 30, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If return of each index is positive, par plus 150% of lesser-performing index’s return; if return of lesser-performing index is less than or equal to zero but greater than or equal to negative 40%, par; if return of either index is less than negative 40%, 1% loss for every 1% that lesser-performing index declines from initial level
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Initial levels: | 24,133.78 for Dow and 1,281.878 for Russell
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Barrier levels: | 60% of initial levels
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Pricing date: | April 27
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Settlement date: | April 30
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40438CEH0
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