Published on 10/7/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $464,000 autocallable contingent income barrier notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 7 – HSBC USA Inc. priced $464,000 autocallable contingent income barrier notes due Sept. 30, 2024 linked to the least performing of the Nasdaq-100 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 will pay a contingent coupon at an annual rate of 6.6% 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 coupon observation date after a year.
The payout at maturity will be par unless any index finishes below 70% of its initial level, in which case investors will be fully exposed to the decline of the least performing index from its initial level.
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: | Nasdaq-100, Russell 2000, S&P 500
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| Amount: | $464,000
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| Maturity: | Sept. 30, 2024
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| Coupon: | 6.6%, payable quarterly if each index closes at or above coupon barrier level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below 70% of its initial level, in which case investors will be fully exposed to the decline of the least performing index from its initial level
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after a year
|
| Initial level: | 2,984.87 for S&P, 1,550.654 for Russell, and 7,803.542 for Nasdaq
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| Coupon barrier: | 2,089.409 for S&P, 1,085.4578 for Russell, and 5,462.4794 for Nasdaq, 70% of initial levels
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| Trigger level: | 2,089.409 for S&P, 1,085.4578 for Russell, and 5,462.4794 for Nasdaq, 70% of initial levels
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.625%
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| Cusip: | 40435UWC4
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