Published on 8/7/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.25 million autocallable contingent income barrier notes on indexes
By Kiku Steinfeld
Chicago, Aug. 7 – HSBC USA Inc. priced $1.25 million of autocallable contingent income barrier notes due July 29, 2024 linked to the least performing of the Russell 2000 index, the Euro Stoxx Banks 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 9.1% if each index closes at or above its coupon barrier level, 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 quarterly coupon observation date after one year.
The payout at maturity will be par plus any final coupon due unless any index finishes below its trigger level, 60% of its initial 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, Euro Stoxx Banks index and Dow Jones industrial average
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| Amount: | $1,247,000
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| Maturity: | July 29, 2024
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| Coupon: | 9.1%, payable quarterly if each index closes at or above coupon barrier level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par plus contingent coupon if applicable; 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
|
| Initial level: | 27,269.97 for Dow, 1,580.417 for Russell, 90.29 for Stoxx
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| Coupon barrier: | 19,088.979 for Dow, 1,106.2919 for Russell, 63.203 for Stoxx; 70% of initial levels
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| Trigger level: | 16,361.982 for Dow, 948.2502 for Russell, 54.174 for Stoxx, 60% of initial levels
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| Pricing date: | July 24
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| Settlement date: | July 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.625%
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| Cusip: | 40435USN5
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