Published on 9/23/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8.89 million autocallable barrier notes linked to Euro Stoxx, Russell
By Angela McDaniels
Tacoma, Wash., Sept. 23 – HSBC USA Inc. priced $8.89 million of 0% autocallable barrier notes with step-up premium and step-down call threshold due Sept. 24, 2024 linked to the lesser performing of the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 10% per year if each index closes at or above its call level on any quarterly observation date. For each index, the call threshold is 100% of its initial level on the first five observation dates and 95% of its initial level on the remaining observation dates, including the final valuation date.
If the final level of the lesser-performing index is less than its call threshold, and therefore not called, but greater than or equal to its barrier level, 70% of its initial level, the payout will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium and step-down call threshold
|
| Underlying indexes: | Euro Stoxx 50 and Russell 2000
|
| Amount: | $8,885,000
|
| Maturity: | Sept. 24, 2024
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par unless either index finishes below barrier level, in which case 1% loss for every 1% decline of lesser-performing index from initial level
|
| Call: | Automatically at par plus call premium of 10% per year if each index closes at or above call level on any quarterly observation date; call threshold is 100% of initial index level on first five observation dates and 95% of initial index level on remaining observation dates
|
| Initial levels: | 1,561.474 for Russell 2000 and 3,552.65 for Euro Stoxx 50
|
| Barrier levels: | 1,093.0318 for Russel 2000 and 2,486.855 for Euro Stoxx 50, or 70% of initial levels
|
| Pricing date: | Sept. 19
|
| Settlement date: | Sept. 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.85%
|
| Cusip: | 40435UYC2
|
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