Published on 10/16/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.16 million contingent income barrier autocallables on three indexes
By Sarah Lizee
Olympia, Wash., Oct. 16 – HSBC USA Inc. priced $2.16 million of autocallable contingent income barrier notes due Oct. 11, 2024 linked to the least performing of the Russell 2000 index, Euro Stoxx Banks index and 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% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date 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 one year.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 60% 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, Euro Stoxx Banks index and Dow Jones industrial average
|
| Amount: | $2,157,000
|
| Maturity: | Oct. 11, 2024
|
| Coupon: | 9%, payable quarterly if each index closes at or above coupon barrier on observation date that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus the final coupon, if any, unless any index finishes below its trigger level, in which case investors will be fully exposed to the decline of the lowest 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: | 26,164.04 for Dow, 1,472.598 for Russell and 82.90 for Stoxx Banks
|
| Coupon barriers: | 18,314.828 for Dow, 1,030.8186 for Russell and 58.03 for Stoxx Banks; 70% of initial levels
|
| Trigger levels: | 15,698.424 for Dow, 883.5588 for Russell and 49.74 for Stoxx Banks; 60% of initial levels
|
| Pricing date: | Oct. 8
|
| Settlement date: | Oct. 11
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.625%
|
| Cusip: | 40435UYM0
|
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