Published on 4/24/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.55 million autocallable contingent income barrier notes on Dow, Russell, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, April 24 – HSBC USA Inc. priced $1.55 million of autocallable contingent income barrier notes due April 24, 2024 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, 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 7.1% if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that period.
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, if any, unless any index finishes below its 50% 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average, Nasdaq-100 index
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| Amount: | $1.55 million
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| Maturity: | April 24, 2024
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| Coupon: | 7.1%, payable quarterly if each index closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par plus any coupon; otherwise, exposure to decline of worst-performing index
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| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
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| Initial level: | 1,565.748 for Russell, 26,559.54 for Dow, 7,698.715 for Nasdaq
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| Barrier level: | 1,174.311 for Russell, 19,919.655 for Dow, 5,767.28625 for Nasdaq, 75% of initial level
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| Trigger level: | 782.874 for Russell, 13,279.77 for Dow, 3,844.8575 for Nasdaq, 50% of initial level
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| Pricing date: | April 18
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| Settlement date: | April 24
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40435ULS1
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