Published on 6/19/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $698,000 autocallable contingent income barrier notes on Dow, Russell, Nasdaq
By Sarah Lizee
Olympia, Wash., June 19 – HSBC USA Inc. priced $698,000 of autocallable contingent income barrier notes due June 19, 2024 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, 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 5.85% 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 60% 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.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Russell 2000 index, Dow Jones industrial average, Nasdaq-100 index
|
| Amount: | $698,000
|
| Maturity: | June 19, 2024
|
| Coupon: | 5.85%, payable quarterly if each index closes at or above coupon barrier on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above trigger level, par plus any coupon; otherwise, exposure to decline of worst-performing index
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
|
| Initial level: | 26,089.61 for Dow, 7,479.111 for Nasdaq and 1,522.499 for Russell
|
| Barrier level: | 18,262.727 for Dow, 5,235.3777 for Nasdaq and 1,065.7493 for Russell, 70% of initial level
|
| Trigger level: | 15,653.766 for Dow, 4,487.4666 for Nasdaq and 913.4994 for Russell, 60% of initial level
|
| Pricing date: | June 14
|
| Settlement date: | June 19
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.625%
|
| Cusip: | 40435UQN7
|
© 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.
