Published on 4/30/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $975,000 autocallable contingent income barrier notes on indexes
By Sarah Lizee
Olympia, Wash., April 30 – HSBC USA Inc. priced $975,000 of autocallable contingent income barrier notes due April 30, 2029 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8.15% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any coupon observation date after one year.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 70% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying indexes: | S&P 500 index, Russell 2000 index and Euro Stoxx 50 index
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Amount: | $975,000
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Maturity: | April 30, 2029
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Coupon: | 8.15%, payable quarterly if each index closes at or above coupon barrier on determination date for that period
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Price: | Par
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Payout at maturity: | If each index finishes at or above trigger level, par plus any coupon; otherwise, exposure to decline of worst-performing index
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Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
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Initial levels: | 1,575.612 for Russell, 2,926.17 for S&P and 3,491.92 for Stoxx
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Barrier levels: | 1,102.928 for Russell, 2,048.32 for S&P and 2,444.34 for Stoxx, 70% of initial levels
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Trigger levels: | 1,102.928 for Russell, 2,048.32 for S&P and 2,444.34 for Stoxx, 70% of initial levels
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Pricing date: | April 25
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Settlement date: | April 30
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 4.5%
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Cusip: | 40435ULF9
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