Published on 5/29/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $950,000 callable contingent income barrier notes on three indexes
By Sarah Lizee
Olympia, Wash., May 29 – HSBC USA Inc. priced $950,000 of callable contingent income barrier notes due May 24, 2024 linked to the least performing of the Russell 2000 index, Dow Jones industrial average and Nasdaq-100 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 7.2% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that quarter.
The notes are callable quarterly at par starting Nov. 25.
The payout at maturity will be par 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.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying indexes: | Russell 2000 index, Dow Jones industrial average and Nasdaq-100 index
|
| Amount: | $950,000
|
| Maturity: | May 24, 2024
|
| Coupon: | 7.2%, payable quarterly if each index closes at or above coupon barrier on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing index
|
| Call: | Callable quarterly at par starting Nov. 25
|
| Initial levels: | 25,877.33 for Dow, 7,451.020 for Nasdaq and 1,545.248 for Russell
|
| Coupon barriers: | 19,407.9975 for Dow, 5,588.265 for Nasdaq and 1,158.936 for Russell; 75% of initial levels
|
| Trigger levels: | 12,938.665 for Dow, 3,725.51 for Nasdaq and 772.624 for Russell; 50% of initial levels
|
| Pricing date: | May 21
|
| Settlement date: | May 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40435UNP5
|
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