Published on 12/10/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.27 million autocallable securities with contingent coupon on three indexes
By Sarah Lizee
Olympia, Wash., Dec. 10 – HSBC USA Inc. priced $1.27 million of autocallable securities with contingent coupon and contingent downside due Nov. 30, 2026 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 6.5% per year if each index closes at or above its coupon trigger, 70% of its initial level, on the observation date for that quarter.
Beginning Nov. 24, 2020, the notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.
The payout at maturity will be par unless any index finishes below its 60% barrier level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable securities with contingent coupon and contingent downside
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Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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Amount: | $1,267,000
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Maturity: | Nov. 30, 2026
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Coupon: | 6.5% per year, payable quarterly if each index closes at or above coupon trigger on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any index finishes below barrier level, in which case 1% loss for every 1% that least-performing index declines from initial level
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Call: | Beginning Nov. 24, 2020, automatically at par if each index closes at or above initial level on any quarterly call observation date
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Initial levels: | 3,133.64 for S&P, 1,621.904 for Russell and 3,707.68 for Stoxx
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Coupon triggers: | 2,193.548 for S&P, 1,135.3328 for Russell and 2,595.376 for Stoxx, or 70% of initial levels
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Barrier levels: | 1,880.184 for S&P, 973.1424 for Russell and 2,224.608 for Stoxx, or 60% of initial levels
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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: | 2.925%
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Cusip: | 40435UJ47
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