Published on 4/2/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $585,000 callable contingent income barrier notes on indexes, ETF
By Kiku Steinfeld
Chicago, April 2 – HSBC USA Inc. priced $585,000 of callable contingent income barrier notes due March 18, 2025 linked to the iShares MSCI Emerging Markets exchange-traded fund, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 12.5% if each underlying closes at or above the coupon trigger level, 70% of the initial level, on the observation date for that quarter.
The notes will be callable at par plus any coupon due on any quarterly call observation date after one year.
If the notes are not called and each underlying finishes at or above the 70% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing underlying from its initial level.
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 assets: | iShares MSCI Emerging Markets ETF, Russell 2000 index and Nasdaq-100 index
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| Amount: | $585,000
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| Maturity: | March 18, 2025
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| Coupon: | 12.5%, payable quarterly if each underlying closes at or above coupon trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each underlying finishes at or above barrier level, par plus final coupon; otherwise, 1% loss for each 1% decline of the least-performing underlying from initial level
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| Call option: | At par plus any coupon on any quarterly call observation date after one year
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| Initial levels: | 7,995.263 for Nasdaq, 1,449.221 for Russell, $36.14 for ETF
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| Coupon trigger: | 5,596.6841 for Nasdaq, 847.0945 for Russell, $25.298 for ETF, 70% of initial prices
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| Barrier levels: | 5,596.6841 for Nasdaq, 847.0945 for Russell, $25.298 for ETF, 70% of initial prices
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| Pricing date: | March 13
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| Settlement date: | March 18
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40438CCB5
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