Published on 6/25/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $960,000 autocallable securities with contingent coupon on indexes
By Sarah Lizee
Olympia, Wash., June 25 – HSBC USA Inc. priced $960,000 of autocallable securities with contingent coupon and contingent downside due June 24, 2024 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 11.4% 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 Dec. 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 Dow Jones industrial average
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| Amount: | $960,000
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| Maturity: | June 24, 2024
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| Coupon: | 11.4% 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 Dec. 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: | 3,113.49 for S&P, 1,426.531 for Russell, 26,119.61 for Dow
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| Coupon triggers: | 2,335.1175 for S&P, 1,069.89825 for Russell, 19,589.7075 for Dow, or 75% of initial levels
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| Barrier levels: | 2,335.1175 for S&P, 1,069.89825 for Russell, 19,589.7075 for Dow, or 75% of initial levels
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| Pricing date: | June 17
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| Settlement date: | June 22
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.175%
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| Cusip: | 40438CJU6
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