Published on 4/23/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $11.51 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, April 23 – HSBC USA Inc. priced $11.51 million of 0% autocallable barrier notes with step-up premium and contingent return feature due May 10, 2023 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.
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 8.25% per year.
The payout will be par plus the 10% contingent return 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.
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| Issue: | Autocallable barrier notes with step-up premium and contingent return
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $11,509,000
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| Maturity: | May 10, 2023
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 10% unless either 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
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| 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 8.25% per year
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| Initial index levels: | 2,905.03 for S&P, 1,565.748 for Russell
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| Barrier levels: | 2,033.521 for S&P, 1,096.0236 for Russell; 70% of initial levels
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| Pricing date: | April 18
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| Settlement date: | April 26
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435ULD4
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