Published on 3/5/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.49 million autocallable yield notes on S&P 500, Russell
By Sarah Lizee
Olympia, Wash., March 5 – HSBC USA Inc. priced $3.49 million of 7.15% autocallable yield notes due June 5, 2020 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
After six months, the notes will be called at par of $1,000 plus the interest payment if each index closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final interest payment unless either index ever closes below its 70% trigger level during the life of the notes and the final level is negative, in which case investors will lose 1% for each 1% decline of the worst performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $3,487,000
|
| Maturity: | June 5, 2020
|
| Coupon: | 7.15%, payable monthly
|
| Price: | Par
|
| Call: | Automatically at par plus coupon if each index closes at or above initial level on a quarterly observation date after six months
|
| Payout at maturity: | Par plus coupon unless either index ever closes below its 70% trigger level during the life of the notes and the final level is negative, in which case full exposure to decline of lesser performing index
|
| Initial levels: | 2,784.49 for S&P and 1,575.549 for Russell
|
| Trigger levels: | 1,949.14 for S&P and 1,102.884 for Russell; 70% of initial levels
|
| Pricing date: | Feb. 28
|
| Settlement date: | March 5
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.375%
|
| Cusip: | 40435UFU3
|
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