Published on 3/29/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $845,000 callable notes with contingent return linked to Stoxx, Russell
By Wendy Van Sickle
Columbus, Ohio, March 29 – HSBC USA Inc. priced $845,000 of callable notes with contingent return due March 28, 2029 linked to the lesser performing of the Euro Stoxx 50 index and the Russell 2000 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 9% if each index closes at or above its coupon trigger, 7e% of its initial level, on the observation date for that period.
The notes are callable at par quarterly after one year.
The payout at maturity will be par plus the final contingent coupon, if any, unless either index finishes below its 60% barrier level, in which case investors will be fully exposed to the decline of the worse-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
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| Indexes: | Euro Stoxx 50 and Russell 2000
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| Amount: | $845,000
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| Maturity: | March 28, 2029
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| Coupon: | 9% per year, payable quarterly if each index closes at or above barrier level on observation date for that period
|
| Price: | Par
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| Payout at maturity: | Par plus contingent coupon, if any, unless either index finishes below barrier level, in which case full exposure to decline of worse-performing index
|
| Call option: | At par quarterly after one year
|
| Initial index levels: | 3,300.48 for Stoxx and 1,512.864 for Russell 2000
|
| Coupon trigger levels: | 2,475.36 for Stoxx and 1,134.648 for Russell 2000; 75% of initial levels
|
| Barrier levels: | 1,980.288 for Stoxx and 907.714 for Russell 2000; 60% of initial levels
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| Pricing date: | March 25
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| Settlement date: | March 28
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4.2%
|
| Cusip: | 40435UKA1
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