Published on 8/5/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.11 callable notes with contingent return on index, ETF
By Marisa Wong
Los Angeles, Aug. 5 – HSBC USA Inc. priced $1.11 million of callable notes with contingent return due July 26, 2022 linked to the S&P 500 index and the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 10.6% if each asset closes at or above the 65% coupon trigger level on the related observation date.
HSBC may call the notes on any semiannual coupon payment date.
The payout at maturity will be par plus the final contingent coupon unless either asset finishes below its 65% barrier level, in which case investors will be fully exposed to any losses of the worse performing asset.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable notes with contingent return
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| Underlying assets: | S&P 500 index and SPDR S&P Biotech ETF
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| Amount: | $1.11 million
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| Maturity: | July 26, 2022
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| Coupon: | 10.6%, payable semiannually if each asset closes at or above coupon trigger on related observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless either asset finishes below barrier value, in which case full exposure to losses of worse performing asset
|
| Call option: | At par on any semiannual coupon payment date
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| Initial values: | 2,976.61 for index and $85.61 for ETF
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| Coupon triggers: | 1,934.7965 for index, $55.6465 for ETF; 65% of initial values
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| Barrier values: | 1,934.7965 for index, $55.6465 for ETF; 65% of initial values
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| Pricing date: | July 19
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| Settlement date: | July 26
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435URB2
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