Published on 12/13/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million autocallable contingent income barrier notes on indexes, ETF
By Sarah Lizee
Olympia, Wash., Dec. 13 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due Sept. 3, 2021 linked to the S&P 500 index, the Russell 2000 index and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
If each asset closes at or above its coupon barrier, 70% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 7.45%.
The notes will be called at par plus the contingent coupon if each asset closes at or above its initial level on any quarterly observation date beginning May 29, 2020.
The payout at maturity will be par plus the contingent coupon unless any asset finishes below the 70% trigger level, in which case investors will lose 1% for each 1% decline of the worst performing asset from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying assets: | S&P 500 index, Russell 2000 index and iShares MSCI EAFE ETF
|
| Amount: | $1 million
|
| Maturity: | Sept. 3, 2021
|
| Coupon: | 7.45% annualized, payable each quarter that each asset closes at or above its coupon trigger on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless any asset finishes below trigger level, in which case 1% loss for each 1% decline of least performing asset from initial level
|
| Call: | At par if each asset closes at or above initial level on any quarterly observation date starting May 29, 2020
|
| Initial levels: | 3,153.63 for S&P, 1,634.104 for Russell and $68.66 for ETF
|
| Coupon triggers: | 2,207.541 for S&P, 1,143.8728 for Russell and $48.062 for ETF; 70% of initial levels
|
| Barrier levels: | 2,207.541 for S&P, 1,143.8728 for Russell and $48.062 for ETF; 70% of initial levels
|
| Pricing date: | Nov. 27
|
| Settlement date: | Dec. 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.6%
|
| Cusip: | 40435UM92
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
