Published on 5/16/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.23 million trigger autocallable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., May 16 – HSBC USA Inc. priced $5.23 million trigger autocallable contingent yield notes due May 16, 2024 linked to the Nasdaq-100 index, the S&P 500 index and the Russell 2000 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% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly observation date after one year.
The payout at maturity will be par plus any contingent coupon, unless either index finishes below the 60% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
|
Issue: | Trigger autocallable contingent yield notes
|
Underlying indexes: | Nasdaq-100, S&P 500 and Russell 2000
|
Amount: | $5,225,000
|
Maturity: | May 16, 2024
|
Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier on observation date
|
Price: | Par of $10
|
Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly observation date after one year
|
Payout at maturity: | Par plus any coupon unless either index closes below downside threshold level, in which case will lose 1% for each 1% decline of the worse performing index from initial level
|
Initial levels: | 7,324.132 for Nasdaq, 1,523.001 for Russell, 2,811.87 for S&P
|
Coupon barriers: | 5,126.892 for Nasdaq, 1,066.101 for Russell, 1,968.31 for S&P; 70% of initial levels
|
Threshold levels: | 4,394.479 for Nasdaq, 913.801 for Russell, 1,687.12 for S&P; 60% of initial levels
|
Pricing date: | May 14
|
Settlement date: | May 17
|
Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
Fees: | 2%
|
Cusip: | 40436B683
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.