Published on 1/16/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $10 million autocallable return notes linked to three stocks
By Sarah Lizee
Olympia, Wash., Jan. 16 – HSBC USA Inc. priced $10 million of 0% autocallable return notes due Jan. 16, 2025 linked to the common stocks of AbbVie Inc., NIKE, Inc. and Constellation Brands, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus a call premium of 13.8% a year if each asset closes at or above its initial level on any annual call date.
If the notes are not called, the payout at maturity will be par plus 69% unless any asset finishes below the trigger level, 50% of the initial level, in which case investors will lose 1% for every 1% that the least performing asset declines from its initial level.
HSBC Securities (USA) Inc. is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable return notes
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Underlying assets: | AbbVie Inc., NIKE, Inc. and Constellation Brands, Inc.
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Amount: | $10 million
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Maturity: | Jan. 16, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 69% unless any asset finishes below trigger level, in which case 1% loss for every 1% that the least performing asset declines from initial level
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Call: | Automatically at par plus call premium of 13.8% a year if each asset closes at or above initial level on any annual call date
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Initial index level: | $88.52 for AbbVie, $102.16 for NIKE and $188.44 for Constellation
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Trigger level: | $44.26 for AbbVie, $51.08 for NIKE and $94.22 for Constellation; 50% of initial level
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Pricing date: | Jan. 14
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Settlement date: | Jan. 17
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Underwriter: | HSBC Securities (USA) Inc.
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Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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Fees: | 1%
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Cusip: | 40435U2Z6
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