Published on 5/20/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $34,000 barrier enhanced participation notes on Dow, Nasdaq, S&P
By Wendy Van Sickle
Columbus, Ohio, May 20 – HSBC USA Inc. priced $34,000 of 0% barrier enhanced participation notes due May 20, 2025 linked to the least performing of the S&P 500 index, the Dow Jones industrial average and the Nasdaq-100 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 110% of the least-performing index’s return. If the return of the least-performing index is less than or equal to zero but greater than or equal to negative 50%, the payout will be par. If the return of either index is less than negative 50%, investors will lose 1% for every 1% that the least-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, S&P 500 index and Nasdaq-100 index
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Amount: | $34,000
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Maturity: | May 20, 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 110% of least-performing index’s return; if return of least-performing index is less than or equal to zero but greater than or equal to negative 50%, par; if return of either index is less than negative 50%, 1% loss for every 1% that least-performing index declines from initial level
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Initial levels: | 23,685.42 for Dow, 9,152.639 for Nasdaq and 2,863.7 for S&P
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Barrier levels: | 50% of initial levels
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Pricing date: | May 15
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Settlement date: | May 20
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40435CFZ9
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