Published on 5/5/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $549,000 autocallable contingent income barrier notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, May 5 – HSBC USA Inc. priced $549,000 of autocallable contingent income barrier notes due April 29, 2024 linked to the Russell 2000 index, the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 6.5% if each asset closes at or above the coupon trigger level, 60% of the initial level, on the observation date for that month.
The notes will be called at par plus the coupon if each asset closes at or above the initial price on any quarterly observation date beginning after one year.
If the notes are not called and each asset finishes at or above the 60% 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 asset 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 assets: | Russell 2000 index, S&P 500 index and SPDR S&P Biotech ETF
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| Amount: | $549,000
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| Maturity: | April 29, 2024
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| Coupon: | 9.3%, payable monthly if each asset closes at or above coupon trigger level on observation date for that month
|
| Price: | Par
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| Payout at maturity: | If each asset finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing asset from initial level
|
| Call: | At par plus coupon if each asset closes at or above initial price on any quarterly observation date beginning after one year
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| Initial levels: | $98.31 for ETF, 2,878.48 for S&P and 1,281.878 for Russell
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| Coupon triggers: | 60% of initial prices
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| Barrier levels: | 60% of initial prices
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| Pricing date: | April 27
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| Settlement date: | April 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40438CFF3
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