Published on 6/26/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $130,000 million autocallable barrier notes with step-up premium on index, ETF
By Wendy Van Sickle
Columbus, Ohio, June 26 – HSBC USA Inc. priced $130,000 of 0% autocallable barrier notes with step-up premium and contingent return feature due June 28, 2023 linked to the lesser performing of the Euro Stoxx 50 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each asset closes at or above 90% of its initial level on any annual observation date. The call premium is 11.7% per year.
The payout will be par plus the 10% contingent return unless any asset has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing asset from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-up premium and contingent return
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Underlying assets: | Euro Stoxx 50 index, iShares MSCI Emerging Markets ETF
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Amount: | $130,000
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Maturity: | June 28, 2023
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 10% unless either asset has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing asset from its initial level
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Call: | At par plus a call premium if each asset closes at or above 90% of its initial level on any annual observation date; call premium is 11.7% per year
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Initial levels: | 3,446.92 for index, $42.77 for ETF
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Barrier levels: | 2,426.844 for index, $29.939 for ETF; 70% of initial levels
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Pricing date: | June 21
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Settlement date: | June 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40435UPC2
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