Published on 2/21/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.25 million autocallable barrier notes with contingent return on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 21 – HSBC USA Inc. priced $2.25 million of 0% autocallable barrier notes with step-up premium and contingent return due March 8, 2023 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an 11.5% annualized call premium if each index closes at or above its initial level on any annual observation date.
The payout will be par plus 10% unless either index has finished below its 70% trigger level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-up premium and contingent return
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Underlying indexes: | S&P 500, Russell 2000
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Amount: | $2,245,000
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Maturity: | March 8, 2023
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 10%, unless either index has finished below trigger level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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Call: | At par plus 11.5% annualized call premium if each index closes at or above initial level on any annual observation date
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Initial index levels: | 2,775.6 for S&P, 1,569.247 for Russell
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Triggers: | 1,942.92 for S&P, 1,098.4729 for Russell; 70% of initial levels
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Pricing date: | Feb. 15
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Settlement date: | Feb. 22
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40435UES9
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