Published on 2/23/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.28 million callable contingent income barrier notes on Dow, Russell, Nasdaq
By Kiku Steinfeld
Chicago, Feb. 24 – HSBC USA Inc. priced $1.28 million of callable contingent income barrier notes due Feb. 13, 2023 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, 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 6.65% if each index closes at or above its coupon trigger level, 65% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly observation date other than the first and final dates.
The payout at maturity will be par plus the final coupon unless any index finishes below its 65% barrier 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: | Russell 2000 index, Dow Jones industrial average, Nasdaq-100 index
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| Amount: | $1,280,000
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| Maturity: | Feb. 13, 2023
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| Coupon: | 6.65%, payable quarterly if each index closes at or above coupon trigger on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus coupon; otherwise, exposure to decline of worst-performing index
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| Call option: | At par plus any coupon on any quarterly observation date other than first and final dates
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| Initial levels: | 1,656.778 for Russell, 29,102.51 for Dow, 9,401.098 for Nasdaq
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| Coupon trigger/barrier levels: | 1,076.9057 for Russell, 18,916.6315 for Dow, 6,110.7137 for Nasdaq, 65% of initial levels
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| Pricing date: | Feb. 7
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| Settlement date: | Feb. 12
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435U6A7
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