Published on 6/17/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $580,000 autocallable barrier notes on S&P, Russell, Nasdaq
By Marisa Wong
Morgantown, W.Va., June 17 – HSBC USA Inc. priced $580,000 of 0% autocallable barrier notes with contingent return due May 31, 2024 linked to the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon at a rate of 5.85% per year for each quarter that each index closes at or above the 70% coupon barrier level on the observation date for that quarter.
The notes will be called at par if each underlying closes at or above its initial level on any quarterly observation date after one year.
The payout at maturity will be par unless any underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worst performer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying assets: | S&P 500 index, Russell 2000 index and Nasdaq-100 index
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| Amount: | $580,000
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| Maturity: | May 31, 2024
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| Coupon: | 5.85% per year, payable each quarter that each index closes at or above the coupon barrier on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any underlying falls by more than 30%, in which case full exposure to the decline of the worst performer
|
| Call: | Automatically at par if each underlying closes at or above its initial level on any quarterly observation date after one year
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| Initial levels: | 2,802.39 for S&P, 1,504.019 for Russell and 7,278.376 for Nasdaq
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| Coupon barriers: | 1,961.67 for S&P, 1,052.813 for Russell and 5,094.863 for Nasdaq; 70% of initial levels
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| Trigger levels: | 1,961.67 for S&P, 1,052.813 for Russell and 5,094.863 for Nasdaq; 70% of initial levels
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| Pricing date: | May 28
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| Settlement date: | May 31
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40435UNF7
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