Published on 2/28/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.5 million callable notes with contingent return on three indexes
By Sarah Lizee
Olympia, Wash., Feb. 28 – HSBC USA Inc. priced $3.5 million of callable notes with contingent return due Feb. 28, 2029 linked to the Russell 2000 index, the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if each index closes above its 70% coupon barrier on observation date.
The notes will be callable at par plus any coupon due on any quarterly payment date beginning on Nov. 29, 2019.
The payout at maturity will be par plus the final coupon unless any index finishes below its 70% barrier level, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
|
| Underlying indexes: | S&P 500, Euro Stoxx 50, Russell 2000
|
| Amount: | $3.5 million
|
| Maturity: | Feb. 28, 2029
|
| Coupon: | 8.5%, payable quarterly if each index closes above 70% of initial level on observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus 8.5% contingent return payment unless any index finishes below its barrier level, in which case investors will be fully exposed to any losses of the worst performing index
|
| Call: | At par plus any coupon due on any quarterly payment date beginning on Nov. 29, 2019
|
| Initial levels: | 2,796.11 for S&P, 1,588.805 for Russell, 2,296.007 for Stoxx
|
| Coupon barrier/barrier: | 2,296.007 for S&P, 1,112.1635 for Russell, 2,296.007 for Stoxx, 70% of initial levels
|
| Pricing date: | Feb. 25
|
| Settlement date: | Feb. 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4.1064286%
|
| Cusip: | 40435UGM0
|
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