Published on 6/6/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $672,000 autocallable barrier notes with contingent return on indexes
By Sarah Lizee
Olympia, Wash., June 6 – HSBC USA Inc. priced $672,000 of autocallable barrier notes with contingent return due June 5, 2024 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its coupon trigger, 70% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 7.9%.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date after one year.
The payout will be par plus the final coupon unless any index finishes 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 contingent return
|
| Underlying indexes: | S&P 500, Russell 2000, Nasdaq-100
|
| Amount: | $672,000
|
| Maturity: | June 5, 2024
|
| Coupon: | 7.9% annualized, payable each quarter that each index closes at or above its coupon trigger on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon unless any index finishes below barrier level, in which case investors will lose 1% for each 1% decline of lesser-performing index from its initial level
|
| Call: | At par if each index closes at or above initial level on any quarterly observation date after one year
|
| Initial levels: | 2,752.06 for S&P, 1,465.487 for Russell, 7,127.956 for Nasdaq
|
| Coupon triggers: | 1,926.44 for S&P, 1,025.841 for Russell, 4,989.569 for Nasdaq; 70% of initial levels
|
| Barrier levels: | 1,926.44 for S&P, 1,025.841 for Russell, 4,989.569 for Nasdaq; 70% of initial levels
|
| Pricing date: | May 31
|
| Settlement date: | June 5
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.625%
|
| Cusip: | 40435UNG5
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
