Published on 10/16/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.15 million contingent income barrier autocallables on three indexes
By Sarah Lizee
Olympia, Wash., Oct. 16 – HSBC USA Inc. priced $1.15 million of autocallable contingent income barrier notes due April 12, 2021 linked to the least performing of the Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average, 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 8.4% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date that month.
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 plus the final coupon, if any, unless any index closes below its 70% trigger level on any day during the life of the notes, 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.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
|
| Amount: | $1,154,000
|
| Maturity: | April 12, 2021
|
| Coupon: | 8.4%, payable monthly if each index closes at or above coupon barrier on observation date that month
|
| Price: | Par
|
| Payout at maturity: | Par plus the final coupon, if any, unless any index closes below its trigger level on any day during the life of the notes, in which case investors will be fully exposed to the decline of the lowest performing index
|
| Call: | At par plus coupon if each index closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | 26,164.04 for Dow, 1,472.598 for Russell and 7,604.270 for Nasdaq
|
| Coupon barriers: | 18,314.828 for Dow, 1,030.8186 for Russell and 5,322.989 for Nasdaq; 70% of initial levels
|
| Trigger levels: | 18,314.828 for Dow, 1,030.8186 for Russell and 5,322.989 for Nasdaq; 70% of initial levels
|
| Pricing date: | Oct. 8
|
| Settlement date: | Oct. 11
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.875%
|
| Cusip: | 40435UYS7
|
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