Published on 11/19/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $149,000 callable contingent income barrier notes on indexes
By Taylor Fox
New York, Nov. 19 – HSBC USA Inc. priced $149,000 of callable contingent income barrier notes due Aug. 4, 2025 linked to the Euro Stoxx Banks index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11% if each index closes at or above the coupon trigger level, 70% of the initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly call observation date after one year.
If the notes are not called and each index finishes at or above the 60% barrier level, the payout at maturity will be par plus any final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing underlying from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying assets: | Euro Stoxx Banks index, Russell 2000 index and Nasdaq-100 index
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| Amount: | $149,000
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| Maturity: | Aug. 4, 2025
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| Coupon: | 11%, payable quarterly if each index closes at or above coupon trigger level on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus any final coupon; otherwise, 1% loss for each 1% decline of the least-performing underlying from initial level
|
| Call option: | At par plus any coupon on any quarterly call observation date after one year
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| Initial levels: | 11,052.95 for Nasdaq, 1,538.479 for Russell and 53.41 for Stoxx
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| Coupon trigger: | 70% of initial prices
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| Barrier levels: | 60% of initial prices
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| Pricing date: | Oct. 30
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| Settlement date: | Nov. 4
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
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| Cusip: | 40438CXJ5
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