Published on 7/8/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $307,000 autocallable barrier notes linked to Russell, S&P
By Angela McDaniels
Tacoma, Wash., July 8 – HSBC USA Inc. priced $307,000 of 0% autocallable barrier notes with step-up premium and contingent return feature due June 28, 2023 linked to 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 automatically called at par plus a call premium of 6.9% per year if each index closes at or above its initial level on any annual observation date.
If the final return of the lesser-performing index is less than zero, and therefore the notes are not called, but greater than or equal to negative 30%, the payout at maturity will be par plus 10%. Otherwise, investors will lose 1% for every 1% that the lesser-performing index’s final level is less than its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium and contingent return feature
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $307,000
|
| Maturity: | June 28, 2023
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final return of lesser-performing index is less than zero, par plus 10%; otherwise, 1% loss for every 1% that lesser-performing index’s final level is less than initial level
|
| Call: | Automatically at par plus call premium of 6.9% per year if each index closes at or above initial level on any annual observation date
|
| Initial levels: | 2,917.38 for S&P 500 and 1,521.035 for Russell 2000
|
| Barrier levels: | 2,042.166 for S&P 500 and 1,064.7245 for Russell 2000, or 70% of initial levels
|
| Pricing date: | June 25
|
| Settlement date: | June 28
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 3.25%
|
| Cusip: | 40435UPD0
|
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