Published on 4/9/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1 million barrier digital notes linked to Brazilian real
By Angela McDaniels
Tacoma, Wash., April 9 – HSBC USA Inc. priced $1 million of 0% barrier digital notes due April 27, 2020 linked to the performance of the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.
If the final spot rate is less than or equal to the barrier spot rate, 120% of the initial spot rate, the payout at maturity will be par plus 7.2%. Otherwise, investors will lose 1% for each 1% that the final spot rate is greater than the initial spot rate.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Barrier digital notes
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Underlying currency: | Brazilian real, measured relative to dollar
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Amount: | $1 million
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Maturity: | April 27, 2020
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If final spot rate is less than or equal to barrier spot rate, par plus 7.2%; otherwise, 1% loss for each 1% that final spot rate is greater than initial spot rate
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Initial spot rate: | 3.8622
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Barrier spot rate: | 4.6346, 120% of initial spot rate
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Final spot rate: | Average of spot rates on five trading days ending April 22, 2020
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Pricing date: | April 5
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Settlement date: | April 10
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1%
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Cusip: | 40435ULP7
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