Published on 1/28/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.1 million contingent income barrier autocallables tied to IBM, Verizon, Cisco
By Wendy Van Sickle
Columbus, Ohio, Jan. 28 – HSBC USA Inc. priced $2.1 million of autocallable contingent income barrier notes due Jan. 24, 2025 linked to the least performing of the common stocks of International Business Machines Corp., Verizon Communications Inc. and Cisco Systems, Inc., 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 9% if each stock closes at or above its coupon trigger price, 55% of the initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date after one year.
If the notes are not called, the payout at maturity will be par plus the final coupon unless any stock finishes below its 55% trigger level, in which case investors will be fully exposed to the decline of the least performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | International Business Machines Corp., Verizon Communications Inc., Cisco Systems, Inc.
|
| Amount: | $2.1 million
|
| Maturity: | Jan. 24, 2025
|
| Coupon: | Each quarter, 9% per year if stocks close at or above trigger price on observation date
|
| Price: | Par
|
| Payout at maturity: | If stocks finish at or above trigger price, par plus final coupon; otherwise, full exposure to decline of least performing stock
|
| Call: | Automatically at par plus final coupon if stocks close at or above initial share price on any coupon observation date after one year
|
| Initial share prices: | $143.89 for IBM, $60.48 for Verizon, $49.06 for Cisco
|
| Coupon trigger/trigger prices: | $79.1395 for IBM, $33.264 for Verizon, $26.983 for Cisco, 55% of initial share price
|
| Pricing date: | Jan. 22
|
| Settlement date: | Jan. 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.35%
|
| Cusip: | 40435U3D4
|
|
|
© 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.
