Published on 12/9/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.06 million contingent income barrier autocallables on stocks
By Sarah Lizee
Olympia, Wash., Dec. 9 – HSBC USA Inc. priced $1.06 million of autocallable contingent income barrier notes due Nov. 29, 2022 linked to the least performing of the common stocks of Delta Air Lines, Inc., Lowe’s Cos., Inc. and Nvidia Corp., 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 10.5% if each stock closes at or above its trigger level, 50% of its initial share price, on the observation date for that period.
The notes will be called at par plus coupon if each stock closes at or above its initial level on any quarterly call observation date.
The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger level, in which case investors will be fully exposed to the decline of the least performing stock.
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 stocks: | Delta Air Lines, Inc., Lowe’s Cos., Inc. and Nvidia Corp.
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Amount: | $1,063,000
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Maturity: | Nov. 29, 2022
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Coupon: | 10.5%, payable monthly if each stock closes at or above trigger level on determination date for that period
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Price: | Par
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Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call observation date
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Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to worst-performing stock
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Initial level: | $56.35 for Delta, $117.00 for Lowe’s and $221.21 for Nvidia
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Trigger/barrier level: | $28.175 for Delta, $58.50 for Lowe’s and $110.605 for Nvidia, 50% of initial price
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Pricing date: | Nov. 25
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Settlement date: | Nov. 29
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.35%
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Cusip: | 40435UL51
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