Published on 9/5/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5.43 million buffered autocallable yield notes on S&P, Russell
Chicago, Sept. 5 – HSBC USA Inc. priced $5.43 million of buffered autocallable yield notes due Feb. 16, 2021 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are callable after six months at par plus a call premium at an annualized rate of 11.5% on a semiannual call date if the level of each index closes at or above its initial level.
Investors will receive par if both indexes finish above 80% of their initial values.
Otherwise, investors will lose 1.25% for each 1% decline beyond the 20% buffer.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Buffered autocallable yield notes
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Underlying indexes: | S&P 500 index and the Russell 2000 index
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Amount: | $5,434,000
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Maturity: | Feb. 16, 2021
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par if both indexes finish above 80% of initial levels; 1.25% loss for each 1% decline beyond 20% buffer
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Call: | Par plus annualized rate of 11.5% if both indexes finish above initial level on Feb. 12, 2020, Aug. 17, 2020 or Feb. 16, 2021
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Initial price: | 2,938.09 for S&P 500 and 1,532.132 for Russell 2000
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Buffer price: | 2,350.472 for S&P 500 and 1,225.7056 for Russell 2000, 80% of initial levels
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Pricing date: | Aug. 8
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Settlement date: | Aug. 13
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.05%
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Cusip: | 40435UVH4
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