Published on 12/12/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.27 million autocallable contingent income barrier notes on Stoxx, Russell
By Kiku Steinfeld
Chicago, Dec. 12 – HSBC USA Inc. priced $1.27 million of autocallable contingent income barrier notes due Nov. 29, 2029 linked to the least performing of 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 will pay a contingent coupon at an annual rate of 7.6% if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that period.
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 coupon if the closing level of each index is greater than or equal to 75% of its initial level. If the closing level of either index is less than 75% but greater than or equal to 40%, the payout will be par. Otherwise, investors will be fully exposed to the decline of the least performing index.
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: | Russell 2000 index and Euro Stoxx 50 index
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Amount: | $1,268,000
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Maturity: | Nov. 29, 2029
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Coupon: | 7.6%, payable quarterly if each index closes at or above coupon barrier level on determination date for that period
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Price: | Par
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Payout at maturity: | Par plus coupon if each index closes at or above 75% of initial level; if the closing level of each index is greater than or equal to 40% but less than 75%, par; otherwise, full exposure to decline of least performing index
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Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
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Initial levels: | 3,707.68 for Stoxx and 1,621.904 for Russell
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Coupon barriers: | 2,780.76 for Stoxx, 1,216.428 for Russell; 75% of initial levels
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Trigger levels: | 2,224.608 for Stoxx, 973.1424 for Russell; 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: | 3%
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Cusip: | 40435UK94
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