Published on 8/8/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $19.49 million trigger contingent yield notes linked to three indexes
By Angela McDaniels
Tacoma, Wash., Aug. 8 – HSBC USA Inc. priced $19.49 million of trigger callable contingent yield notes with daily coupon observation due Feb. 9, 2023 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 the rate of 10.55% per year if each index’s closing level remains at or above its coupon barrier, 70% of its initial level, on each day during that quarter.
The notes are callable at par of $10 quarterly.
If the notes are not called and each index finishes at or above its downside threshold, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger callable contingent yield notes with daily coupon observation
|
| Underlying indexes: | Nasdaq-100, Russell 2000 and S&P 500
|
| Amount: | $19,494,000
|
| Maturity: | Feb. 9, 2023
|
| Coupon: | 10.55% per year, payable quarterly if each index closes at or above its coupon barrier on each day during that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
|
| Call option: | At par quarterly
|
| Initial levels: | 7,415.691 for Nasdaq-100, 1,487.414 for Russell 2000 and 2,844.74 for S&P 500
|
| Coupon barriers: | 5,190.984 for Nasdaq-100, 1,041.190 for Russell 2000 and 1,991.318 for S&P 500, or 70% of initial levels
|
| Downside thresholds: | 4,449.415 for Nasdaq-100, 892.448 for Russell 2000 and 1,706.844 for S&P 500, or 60% of initial levels
|
| Pricing date: | Aug. 5
|
| Trade date: | Aug. 6
|
| Settlement date: | Aug. 9
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 40436B287
|
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