Published on 8/6/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.47 million contingent income barrier autocallables on three indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 6 – HSBC USA Inc. priced $1.47 million of autocallable contingent income barrier notes due Aug. 2, 2024 linked to the least performing of the Russell 2000 index, Dow Jones industrial average and Euro Stoxx Banks 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 10.5% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
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 60% 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: | Autocallable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average and Euro Stoxx Banks index
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| Amount: | $1,466,000
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| Maturity: | Aug. 2, 2024
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| Coupon: | 10.5%, 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: | At par plus coupon if each index closes at or above initial level on any quarterly call observation date after one year
|
| Initial levels: | 27,198.02 for Dow, 1,585.599 for Russell and 86.18 for Stoxx
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| Coupon barriers: | 19,038.614 for Dow, 1,109.9193 for Russell and 60.326 for Stoxx; 70% of initial levels
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| Trigger levels: | 16,318.812 for Dow, 951.3594 for Russell and 51.708 for Stoxx; 60% of initial levels
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| Trade date: | July 30
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| Settlement date: | Aug. 2
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.625%
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| Cusip: | 40435UTA2
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