Published on 10/8/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $268,000 contingent income barrier autocallables on three indexes
By Sarah Lizee
Olympia, Wash., Oct. 8 – HSBC USA Inc. priced $268,000 of autocallable contingent income barrier notes due Oct. 3, 2024 linked to the least performing of the Russell 2000 index, Nasdaq-100 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 8.5% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date that month.
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 70% 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
|
| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and S&P 500 index
|
| Amount: | $268,000
|
| Maturity: | Oct. 3, 2024
|
| Coupon: | 8.5%, payable monthly if each index closes at or above coupon barrier on observation date that month
|
| 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: | 7,749.449 for Nasdaq, 1,523.373 for Russell and 2,976.74 for S&P
|
| Coupon barriers: | 5,424.6143 for Nasdaq, 1,066.3611 for Russell and 2,083.718 for S&P; 70% of initial levels
|
| Trigger levels: | 5,424.6143 for Nasdaq, 1,066.3611 for Russell and 2,083.718 for S&P; 70% of initial levels
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.625%
|
| Cusip: | 40435UWD2
|
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