Published on 4/21/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $477,000 autocallable contingent income barrier notes on indexes
Chicago, April 21 – HSBC USA Inc. priced $477,000 of autocallable contingent income barrier notes due March 31, 2025 linked to the Russell 2000 index, the Nasdaq-100 index and the S&P 500 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 5.7% if each index closes at or above the coupon trigger level, 70% of the initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each index closes at or above the initial price on any quarterly observation date beginning after one year.
If the notes are not called and each index 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 index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and S&P 500 index
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| Amount: | $477,000
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| Maturity: | March 31, 2025
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| Coupon: | 5.7%, payable quarterly if each index closes at or above coupon trigger level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing index from initial level
|
| Call: | At par plus coupon if each index closes at or above initial price on any quarterly observation date beginning after one year
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| Initial levels: | 2,630.07 for S&P, 1,180.319 for Russell and 7,897.128 for Nasdaq
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| Coupon triggers: | 1,841.049 for S&P, 826.2233 for Russell and 5,527.9896 for Nasdaq, 70% of initial prices
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| Barrier levels: | 1,841.049 for S&P, 826.2233 for Russell and 5,527.9896 for Nasdaq, 70% of initial prices
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| Pricing date: | March 26
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| Settlement date: | March 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40438CAG6
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