Published on 3/12/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $404,000 callable contingent income barrier notes on indexes
By Sarah Lizee
Olympia, Wash., March 12 – HSBC USA Inc. priced $404,000 of callable contingent income barrier notes due March 4, 2025 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Euro Stoxx 50 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 5.15% if each index closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
After one year, the notes will be callable at par plus any coupon due on any quarterly observation date other than the final date.
The payout at maturity will be par unless any index finishes below its 60% 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.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying indexes: | Russell 2000 index, Euro Stoxx 50 index, Nasdaq-100 index
|
| Amount: | $404,000
|
| Maturity: | March 4, 2025
|
| Coupon: | 5.15%, payable quarterly if each index closes at or above coupon trigger on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier level, par; otherwise, exposure to decline of worst-performing index
|
| Call option: | After one year, at par plus any coupon on any quarterly observation date other than final date
|
| Initial levels: | 8,461.835 for Nasdaq, 1,476.431 for Russell and 3,329.49 for Stoxx
|
| Coupon triggers: | 5,923.2845 for Nasdaq, 1,033.5017 for Russell and 2,330.643 for Stoxx, 70% of initial levels
|
| Barrier levels: | 5,077.101 for Nasdaq, 885.8586 for Russell and 1,997.694 for Stoxx, 60% of initial levels
|
| Pricing date: | Feb. 28
|
| Settlement date: | March 4
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.625%
|
| Cusip: | 40435U7A6
|
|
|
© 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.
