Published on 2/28/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.73 million autocallable contingent income barrier notes on indexes
By Sarah Lizee
Olympia, Wash., Feb. 28 – HSBC USA Inc. priced $1.73 million of autocallable contingent income barrier notes due Feb. 28, 2029 linked to the least performing of the Russell 2000 index, S&P 500 index and 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 8.2% if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any coupon observation date after one year.
The payout at maturity will be par plus the final coupon unless any index finishes below its trigger 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: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Russell 2000 index, S&P 500 index and Euro Stoxx 50 index
|
| Amount: | $1,731,000
|
| Maturity: | Feb. 28, 2029
|
| Coupon: | 8.2%, payable quarterly if each index closes at or above trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing index
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
|
| Initial levels: | 1,588.805 for Russell, 2,796.11 for S&P and 3,280.01 for Stoxx
|
| Trigger/barrier levels: | 1,112.1635 for Russell, 1,957.277 for S&P and 2,296.007 for Stoxx, 70% of initial levels
|
| Pricing date: | Feb. 25
|
| Settlement date: | Feb. 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4.5%
|
| Cusip: | 40435UET7
|
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