Published on 9/5/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.79 million contingent coupon autocallables linked to indexes
By Sarah Lizee
Olympia, Wash., Sept. 5 – HSBC USA Inc. priced $1.79 million of autocallable market-linked securities with contingent coupon and contingent downside due Aug. 27, 2026 linked to the lowest performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 7% per year if each index closes at or above its coupon barrier level, 70% of its initial level, on the calculation day for that quarter.
From Aug. 24, 2020 through and including May 26, 2026, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly calculation day.
If each index’s final level is greater than or equal to its barrier level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final level of the worst-performing index is less than its initial index level.
HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked securities with contingent coupon and contingent downside
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
|
| Amount: | $1,785,000
|
| Maturity: | Aug. 27, 2026
|
| Coupon: | 7% per year, payable quarterly if each index closes at or above coupon barrier level on calculation day for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier level, par; otherwise, 1% loss for every 1% that worst-performing index’s final level is less than initial level
|
| Call option: | From Aug. 24, 2020 through and including May 26, 2026, notes will be automatically called at par if each index closes at or above initial level on any quarterly calculation day
|
| Initial levels: | 2,924.58 for S&P, 1,496.720 for Russell and 3,411.33 for Stoxx
|
| Coupon barrier levels: | 2,047.206 for the S&P, 1,047.704 for Russell and 2,387.931 for Stoxx; 70% of initial levels
|
| Barrier levels: | 1,754.748 for S&P, 898.032 for Russell and 2,046.798 for Stoxx, or 60% of initial levels
|
| Pricing date: | Aug. 29
|
| Settlement date: | Sept. 4
|
| Agents: | HSBC Securities (USA) Inc. and Wells Fargo Securities, LLC
|
| Fees: | 2.7%
|
| Cusip: | 40435UVC5
|
© 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.
