Published on 12/27/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.79 million autocallable securities with contingent coupon on three indexes
By Kiku Steinfeld
Chicago, Dec. 27 – HSBC USA Inc. priced $6.79 million of autocallable securities with contingent coupon and contingent downside due Dec. 14, 2023 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 7% 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 June 11, 2020 and ending September 11, 2023, the notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly call observation date.
The payout at maturity will be par, plus any coupon, unless any index finishes below its 70% 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. and Wells Fargo Securities are the agents.
| 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: | $6,794,000
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| Maturity: | Dec. 14, 2023
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| Coupon: | 7% per year, payable quarterly if each index closes at or above coupon trigger on observation date for that quarter
|
| 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
|
| Call: | Beginning June 11, 2020 and ending September 11, 2023, automatically at par plus coupon if each index closes at or above initial level on any quarterly call observation date
|
| Initial levels: | 1,631.926 for Russell, 3,141.63 for S&P and 3,687.45 for Stoxx
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| Coupon triggers/barrier levels: | 1,142.3482 for Russell, 2,199.141 for S&P and 2,581.215 for Stoxx, or 70% of initial levels
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| Pricing date: | Dec. 11
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| Settlement date: | Dec. 16
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| Agents: | HSBC Securities (USA) Inc. and Wells Fargo Securities
|
| Fees: | 2.15%
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| Cusip: | 40435UT20
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