Published on 7/11/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.27 million autocallable contingent income barrier notes on indexes
By Sarah Lizee
Olympia, Wash., July 11 – HSBC USA Inc. priced $6.27 million of autocallable contingent income barrier notes due July 12, 2024 linked to the least performing of the Russell 2000 index, Euro Stoxx Banks index and 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 9.5% 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 unless any index finishes below its trigger level, 60% of its initial 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, Euro Stoxx Banks index and Dow Jones industrial average
|
Amount: | $6,272,000
|
Maturity: | July 12, 2024
|
Coupon: | 9.5%, payable quarterly if each index closes at or above trigger level on determination date for that period
|
Price: | Par
|
Payout at maturity: | If each index finishes at or above trigger level, par; 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: | 26,783.49 for Dow, 1,562.589 for Russell, 89.84 for Stoxx
|
Coupon barrier: | 18,748.443 for Dow, 1,093.8123 for Russell, 62.888 for Stoxx; 70% of initial levels
|
Trigger level: | 16,070.094 for Dow, 937.5534 for Russell, 53.904 for Stoxx, 60% of initial levels
|
Pricing date: | July 9
|
Settlement date: | July 12
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 3.625%
|
Cusip: | 40435USF2
|
© 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.