Published on 12/30/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.34 million contingent income autocallables linked to S&P, Russell
By Angela McDaniels
Tacoma, Wash., Dec. 30 – HSBC USA Inc. priced $4.34 million of autocallable contingent income barrier notes due March 29, 2021 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 5.8% per year if each index closes at or above its barrier level, 80% of its initial level, on the observation date for that quarter.
Beginning June 24, 2020, 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.
The payout at maturity will be par unless either index finishes more than 20% below its initial level, in which case investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $4,336,000
|
| Maturity: | March 29, 2021
|
| Coupon: | 5.8% per year, payable quarterly if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index finishes more than 20% below initial level, in which case 1% loss for every 1% that lesser-performing index declines from initial level
|
| Call: | Automatically at par if each index closes at or above initial level on any quarterly observation date beginning June 24, 2020
|
| Initial levels: | 1,667.094 for Russell 2000 and 3,205.37 for S&P 500
|
| Barrier levels: | 1,333.6752 for Russell 2000 and 2,564.296 for S&P 500, or 80% of initial levels
|
| Pricing date: | Dec. 19
|
| Settlement date: | Dec. 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40435US70
|
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