Published on 10/7/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.06 million contingent income barrier autocallables tied to tech stocks
By Wendy Van Sickle
Columbus, Ohio, Oct. 7 – HSBC USA Inc. priced $2.06 million of autocallable contingent income barrier notes due Sept. 30, 2022 linked to the least performing of the common stocks of Apple Inc., Amazon.com, Inc., Alphabet Inc. and Netflix, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 13.65% if each stock closes at or above its trigger level, 60% of its initial share price, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Apple Inc., Amazon.com, Inc., Alphabet Inc. and Netflix, Inc.
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| Amount: | $2,057,000
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| Maturity: | Sept. 30, 2022
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| Coupon: | 13.65%, payable monthly if each stock closes at or above trigger level on determination date for that period
|
| Call: | At par if each stock finishes above initial level on a quarterly observation date after six months
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, number of shares of the worst-performing stock equal to $1,000 divided by initial share price
|
| Initial level: | $221.03 for Apple, $1,768.33 for Amazon.com, $1,254.94 for Alphabet, $264.75 for Netflix
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| Trigger level: | $132.618 for Apple, $1,060.998 for Amazon.com, $747.564 for Alphabet, $158.85 for Netflix, 60% of initial levels
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.35%
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| Cusip: | 40435UVV3
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