Published on 12/27/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $752,000 autocallable barrier notes on Stoxx, EM ETF
By Sarah Lizee
Olympia, Wash., Dec. 27 – HSBC USA Inc. priced $752,000 of autocallable barrier notes with step-down call threshold feature due Jan. 11, 2023 linked to the Euro Stoxx 50 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 9.75% per year if each underlying closes at or above its call level on any observation date. The observation dates are Jan. 8, 2020, Jan. 6, 2021, Jan. 5, 2022 and Jan. 4, 2023.
The call level will be 100% of the initial level on the first, second and third observation dates, and 70% of the initial level on the fourth observation date.
The payout at maturity will be par unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-down call threshold feature
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Underlying assets: | Euro Stoxx 50 index and iShares MSCI Emerging Markets exchange-traded fund
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Amount: | $752,000
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Maturity: | Jan. 11, 2023
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer
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Call: | Automatically at par plus 9.75% per year if each underlying closes at or above call level on an observation date; observation dates are Jan. 8, 2020, Jan. 6, 2021, Jan. 5, 2022 and Jan. 4, 2023
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Call levels: | 100% of initial level on first three observation dates, 70% on fourth
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Initial levels: | 3,000.61 for Stoxx, $38.52 for EM ETF
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Trigger values: | 2,100.427 for Stoxx and $26.964 for EM ETF; 70% of initial levels
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Pricing date: | Dec. 21
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Settlement date: | Dec. 28
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 2.25%
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Cusip: | 40435UBG8
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