By Angela McDaniels
Tacoma, Wash., July 8 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due June 28, 2029 linked to the lesser performing of the Dow Jones industrial average 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 12% per year if each index closes at or above its coupon trigger, 75% 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 unless either index finishes more than 40% below its initial level, in which case investors will lose 1% for every 1% that the lesser-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 and Euro Stoxx Banks
|
| Amount: | $1 million
|
| Maturity: | June 28, 2029
|
| Coupon: | 12% per year, payable quarterly if each index closes at or above coupon trigger on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index finishes more than 40% below initial level, in which case 1% loss for every 1% that lesser-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 and 85.57 for Euro Stoxx Banks
|
| Coupon triggers: | 19,911.165 for Dow and 64.1775 for Euro Stoxx Banks, or 75% of initial levels
|
| Barrier levels: | 15,928.932 for Dow 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: | 5%
|
| Cusip: | 40435UQF4
|
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