Published on 8/8/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $558,000 dual directional barrier notes on iShares MSCI EAFE, Stoxx
By Kiku Steinfeld
Chicago, Aug. 8 – HSBC USA Inc. priced $558,000 of 0% dual directional barrier securities due Aug.5, 2022 linked to the least performing of the iShares MSCI EAFE ETF and the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.
If each asset closes above its initial level, the payout will be par plus 196% of the return of the lesser-performing asset.
If any asset finishes flat or falls below its barrier level, 75% of initial level, the payout at maturity will be par plus the absolute value of the return of the lesser-performing asset.
Investors will lose 1% for each 1% loss of the lesser-performing asset from its initial level if any asset finishes below the 75% barrier level.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Dual directional barrier securities
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Underlying assets: | iShares MSCI EAFE ETF and Euro Stoxx 50 index
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Amount: | $558,000
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Maturity: | Aug.5, 2022
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If each asset finishes above initial level, par plus 196% of lesser-performing asset’s return; if lesser-performing asset closes below its initial level but above the barrier level, par plus the absolute value of the return; otherwise, 1% loss per 1% drop of lesser-performing asset
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Initial levels: | $64.45 for MSCI EAFE, 3,466.85 for Stoxx
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Trigger levels: | $48.3375 for MSCI EAFE, 2,600.1375 for Stoxx; 75% of initial levels
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Pricing date: | July 31
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Settlement date: | Aug.5
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40435URL0
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