Published on 10/10/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.8 million autocallable contingent income barrier notes on indexes
By Kiku Steinfeld
Chicago, Oct. 10 – HSBC USA Inc. priced $1.8 million autocallable contingent income barrier notes due Oct. 1, 2029 linked to the least performing of the Nasdaq-100 index, 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 8% if each index closes at or above its coupon barrier level, 75% 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 one year.
The payout at maturity will be par plus the final coupon unless any index finishes below 75% 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Nasdaq-100, Russell 2000, S&P 500
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| Amount: | $1,798,000
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| Maturity: | Oct. 1, 2029
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| Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus the final coupon unless any index finishes below 75% 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 one year
|
| Initial level: | 2,984.87 for S&P, 1,550.654 for Russell, and 7,803.542 for Nasdaq
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| Coupon barrier: | 2,238.6525 for S&P, 1,090.7729 for Russell, and 5,473.027 for Nasdaq, 75% of initial levels
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| Trigger level: | 2,094.246 for S&P, 1,162.9905 for Russell, 5,852.6565 for Nasdaq, 75% 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.
|
| Fees: | 4.5%
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| Cusip: | 40435UXM1
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