Published on 8/13/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.9 million trigger callable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., Aug. 13 – HSBC USA Inc. priced $3.9 million of trigger callable contingent yield notes with daily coupon observation due Aug. 11, 2022 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.
Each quarter, the notes pay a contingent coupon if each index closes at or above its coupon barrier, 70% of its initial level, on every day that quarter. The contingent coupon rate is 9% per year.
The notes are callable at par of $10 on each quarterly observation date.
If the notes are not called and each index finishes at or above its 58% downside threshold, the payout at maturity will be par.
Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger callable contingent yield notes with daily coupon observation
|
| Underlying indexes: | S&P 500, Russell 2000 and Nasdaq-100
|
| Amount: | $3,897,000
|
| Maturity: | Aug. 11, 2022
|
| Coupon: | 9% per year, payable for each quarter that each index closes at or above its coupon barrier on every day that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above downside threshold, par plus contingent coupon; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
|
| Call option: | At par on each quarterly observation date
|
| Initial levels: | 7,724.83 on Nasdaq, 1,532.132 for Russell, 2,938.09 for S&P
|
| Coupon barriers: | 5,407.381 for Nasdaq, 1,072.492 for Russell, 2,056.66 for S&P; 70% of initial levels
|
| Downside thresholds: | 4,480.401 for Nasdaq, 888.637 for Russell, 1,704.09 for S&P; 58% of initial levels
|
| Pricing date: | Aug. 9
|
| Settlement date: | Aug. 13
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 1.25%
|
| Cusip: | 40436B220
|
© 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.
