Published on 2/28/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.51 million step down trigger autocallables linked to Nasdaq, Russell
By Angela McDaniels
Tacoma, Wash., Feb. 28 – HSBC USA Inc. priced $3.51 million of 0% step down trigger autocallable notes due Feb. 29, 2024 linked to the lesser performing of the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
After one year, the notes will be automatically called at par of $10 plus 7.93% per year if each index closes at or above its call threshold level on any quarterly observation date. For each index, the call threshold level will be equal to the initial index level for the observation dates falling on March 2, 2020 through Nov. 27, 2023 and 70% of the indexes’ respective initial index levels for the final observation date, Feb. 26, 2024.
If the notes are not subject to an automatic call, then the final level of at least one index will be less than its downside threshold, 70% of its initial level, and investors will be exposed to the decline of the lesser-performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Step down trigger autocallable notes
|
| Underlying indexes: | Nasdaq-100 and Russell 2000
|
| Amount: | $3,513,000
|
| Maturity: | Feb. 29, 2024
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Full exposure to decline of lesser-performing index from initial level
|
| Call: | Automatically at par plus 7.93% per year if each index closes at or above call threshold level on any quarterly observation date; call threshold levels equal initial index levels for observation dates falling on March 2, 2020 through Nov. 27, 2023 and 70% of indexes’ respective initial index levels for final observation date, Feb. 26, 2024
|
| Initial index levels: | 7,123.216 for Nasdaq-100 and 1,577.483 for Russell 2000
|
| Downside thresholds: | 4,986.251 for Nasdaq-100 and 1,104.238 for Russell 2000; 70% of initial levels
|
| Pricing date: | Feb. 26
|
| Settlement date: | Feb. 28
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40436A172
|
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