Published on 7/8/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.26 million contingent income autocallables linked to three indexes
By Angela McDaniels
Tacoma, Wash., July 8 – HSBC USA Inc. priced $1.26 million of autocallable contingent income barrier notes due June 28, 2024 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9.75% per year if each index closes at or above its barrier level, 60% of its initial level, on the observation date for that quarter.
Beginning June 24, 2020, 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.
The payout at maturity will be par plus the final coupon unless any index finishes more than 40% below its initial level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Dow Jones industrial average, Russell 2000 and Euro Stoxx Banks
|
| Amount: | $1.26 million
|
| Maturity: | June 28, 2024
|
| Coupon: | 9.75% per year, payable quarterly if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon unless any index finishes more than 40% below initial level, in which case 1% loss for every 1% that least-performing index declines from initial level
|
| Call: | Automatically at par if each index closes at or above initial level on any quarterly observation date beginning June 24, 2020
|
| Initial levels: | 26,548.22 for Dow, 1,521.035 for Russell 2000 and 85.57 for Euro Stoxx Banks
|
| Barrier levels: | 15,928.932 for Dow, 912.621 for Russell 2000 and 51.342 for Euro Stoxx Banks, or 60% of initial levels
|
| Pricing date: | June 25
|
| Settlement date: | June 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.625%
|
| Cusip: | 40435UQS6
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