Published on 4/9/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.11 million autocallable barrier notes with step-up premium on indexes
By Sarah Lizee
Olympia, Wash., April 9 – HSBC USA Inc. priced $2.11 million of 0% autocallable barrier notes with step-up premium due April 10, 2025 linked to the lesser performing of the Dow Jones industrial average, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each index closes at or above its initial level on any annual observation date after one year. The call premium is 12% per year.
The payout will be par unless each index has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium
|
| Underlying indexes: | Dow Jones industrial average, S&P 500, Russell 2000
|
| Amount: | $2,109,000
|
| Maturity: | April 10, 2025
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par unless any index has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
|
| Call: | At par plus a call premium if each index closes at or above its initial level on any annual observation date after one year; call premium is 12% per year
|
| Initial index levels: | 2,873.40 for S&P, 1,560.910 for Russell and 26,218.13 for Dow
|
| Barrier levels: | 2,011.380 for S&P, 1,092.637 for Russell and 18,352.691 for Dow; 70% of initial levels
|
| Pricing date: | April 3
|
| Settlement date: | April 10
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40435ULJ1
|
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