Published on 1/9/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $515,000 callable contingent income barrier notes on three indexes
By Sarah Lizee
Olympia, Wash., Jan. 9 – HSBC USA Inc. priced $515,000 of callable contingent income barrier notes due Jan. 7, 2030 linked to the least performing of the Dow Jones industrial average, 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 an annual rate of 5% if each index closes at or above its coupon barrier, 60% of its initial level, on the observation date for that quarter.
The notes are callable quarterly at par starting July 7, 2020.
The payout at maturity will be par unless any index finishes below its 50% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable contingent income barrier notes
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Underlying indexes: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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Amount: | $515,000
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Maturity: | Jan. 7, 2030
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Coupon: | 5%, payable quarterly if each index closes at or above coupon barrier on determination date for that quarter
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Price: | Par
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Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing index
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Call: | Callable quarterly at par starting July 7, 2020
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Initial levels: | 28,538.44 for Dow, 1,668.469 for Russell, 3,230.78 for S&P
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Coupon barriers: | 17,123.064 for Dow, 1,001.0814 for Russell, 1,938.468 for S&P; 60% of its initial level
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Trigger levels: | 14,269.22 for Dow, 834.2345 for Russell, 1,615.39 for S&P; 50% of initial levels
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Pricing date: | Dec. 31
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Settlement date: | Jan. 6
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40435UV43
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