Published on 8/1/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.52 million trigger autocallables linked to three indexes
By Angela McDaniels
Tacoma, Wash., Aug. 1 – HSBC USA Inc. priced $4.52 million of trigger autocallable contingent yield notes due July 31, 2024 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 7.45% if each index closes at or above its downside threshold, 70% of its initial level, on the observation date for that quarter.
Beginning July 27, 2020, the notes will be automatically called at par of $10 if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless any index finishes below its downside threshold, in which case investors will be exposed to the decline of the least-performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying indexes: | Nasdaq-100, Russell 2000 and S&P 500
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Amount: | $4,515,000
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Maturity: | July 31, 2024
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Coupon: | 7.45%, payable quarterly if indexes close at or above downside thresholds on observation date for that quarter
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Price: | Par of $10
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Payout at maturity: | Par unless any index finishes below downside threshold, in which case exposure to decline of least-performing index from initial level
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Call: | Beginning July 27, 2020, automatically at par if indexes close at or above initial levels on any quarterly observation date
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Initial levels: | 8,016.953 for Nasdaq-100, 1,578.967 for Russell 2000 and 3,025.86 for S&P 500
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Downside thresholds: | 5,611.867 for Nasdaq-100, 1,105.277 for Russell 2000 and 2,118.10 for S&P 500, or 70% of initial levels
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Pricing date: | July 26
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Settlement date: | July 31
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Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40436B337
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