Published on 10/7/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.8 million autocallable contingent income barrier notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 7 – HSBC USA Inc. priced $1.8 million autocallable contingent income barrier notes due Oct. 1, 2029 linked to the least performing of 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 will pay a contingent coupon at an annual rate of 5.9% if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any coupon observation date after six months.
The payout at maturity will be par unless either index finishes below 80% of its initial level, in which case investors will be fully exposed to the decline of the least performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Russell 2000, S&P 500
|
| Amount: | $1,798,000
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| Maturity: | Oct. 1, 2029
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| Coupon: | 5.9%, payable quarterly if each index closes at or above coupon barrier level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index finishes below 80% of its initial level, in which case investors will be fully exposed to the decline of the least performing index from its initial level
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after six months
|
| Initial level: | 2,984.87 for S&P, 1,550.654 for Russell
|
| Coupon barrier: | 2,387.896 for S&P, 1,240.5232 for Russell, 80% of initial levels
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| Trigger level: | 2,387.896 for S&P, 1,240.5232 for Russell, 80% of initial levels
|
| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40435UXS8
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