Published on 10/25/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million callable contingent income barrier notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Oct. 25 – HSBC USA Inc. priced $1 million of callable contingent income barrier notes due Oct. 24, 2024 linked to the least performing of the Russell 2000 index and S&P 500 index, 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 5.1% if each index closes at or above its coupon barrier, 65% of its initial level, on the observation date for that month.
The notes are callable quarterly at par after one year.
The payout at maturity will be par unless either index finishes below its 65% 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, S&P 500 index
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Amount: | $1 million
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Maturity: | Oct. 24, 2024
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Coupon: | 5.1%, payable monthly if each index closes at or above coupon barrier on determination date for that month
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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: | 3,006.72 for S&P and 1,550.139 for Russell
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Coupon barriers: | 1,954.368 for S&P and 1,007.5903 for Russell; 65% of initial levels
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Trigger levels: | 1,954.368 for S&P and 1,007.5903 for Russell; 65% of initial levels
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Pricing date: | Oct. 21
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Settlement date: | Oct. 24
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.625%
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Cusip: | 40435UC69
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