Published on 10/8/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $919,000 callable contingent income barrier notes on Stoxx, Russell
By Wendy Van Sickle
Columbus, Ohio, Oct. 8 – HSBC USA Inc. priced $919,000 of callable contingent income barrier notes due Oct. 1, 2029 linked to the least performing of the Russell 2000 index and Euro Stoxx 50 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 8.5% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that quarter.
The notes are callable quarterly at par after one year.
The payout at maturity will be par unless either index finishes below its 60% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable contingent income barrier notes
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Underlying indexes: | Russell 2000 index, Euro Stoxx 50 index
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Amount: | $919,000
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Maturity: | Oct. 1, 2029
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Coupon: | 8.5%, payable quarterly if each index closes at or above coupon barrier on determination date for that quarter
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Price: | Par
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Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing index
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Call: | Callable quarterly at par after one year
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Initial levels: | 3,513.03 for Stoxx and 1,550.654 for Russell
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Coupon barriers: | 2,634.7725 for Stoxx and 1,162.9905 for Russell; 75% of initial levels
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Trigger levels: | 2,107.818 for Stoxx and 930.3924 for Russell; 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%
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Cusip: | 40435UXW9
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