Published on 4/3/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.3 million contingent income barrier autocallables on three indexes
By Wendy Van Sickle
Columbus, Ohio, April 3 – HSBC USA Inc. priced $2.3 million of autocallable contingent income barrier notes due March 29, 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% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
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 70% 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
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| Underlying indexes: | Russell 2000 index, S&P 500 index and Euro Stoxx 50 index
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| Amount: | $2,299,000
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| Maturity: | March 29, 2029
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| Coupon: | 8%, payable quarterly if each index closes at or above coupon barrier on determination date for that quarter
|
| Price: | Par
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| 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 index closes at or above initial level on any quarterly call observation date after one year
|
| Initial levels: | 1,528.166 for Russell, 2,818.46 for S&P, 3,319.53 for Stoxx
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| Coupon barriers: | 1,069.716 for Russell, 1,972.92 for S&P and 2,323.67 for Stoxx; 70% of initial levels
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| Trigger levels: | 1,069.716 for Russell, 1,972.92 for S&P and 2,323.67 for Stoxx; 70% of initial levels
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| Pricing date: | March 26
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| Settlement date: | March 29
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4.5%
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| Cusip: | 40435UJD7
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