Published on 10/28/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $187,000 contingent income autocallables linked to three indexes
By Angela McDaniels
Tacoma, Wash., Oct. 28 – HSBC USA Inc. priced $187,000 of autocallable contingent income barrier notes due April 29, 2021 linked to the least performing of the Dow Jones industrial average, 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 at the rate of 8.5% per year if each index closes at or above its barrier value, 70% of its initial level, on the observation date for that quarter.
Beginning April 24, 2020, the notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.
The payout at maturity will be par unless any index closes below its barrier value during the life of the notes and any index finishes below its initial level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Dow Jones industrial average, Russell 2000 and Nasdaq-100
|
| Amount: | $187,000
|
| Maturity: | April 29, 2021
|
| Coupon: | 8.5% per year, payable quarterly if each index closes at or above barrier value on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any index closes below barrier value during life of notes and any index finishes below initial level, in which case 1% loss for every 1% that least-performing index declines from initial level
|
| Call: | Beginning April 24, 2020, automatically at par if each index closes at or above initial level on any quarterly call observation date
|
| Initial levels: | 26,805.53 for Dow, 1,550.18 for Russell 2000 and 7,966.719 for Nasdaq-100
|
| Barrier values: | 18,763.871 for Dow, 1,085.126 for Russell 2000 and 5,576.7033 for Nasdaq-100, or 70% of initial levels
|
| Pricing date: | Oct. 24
|
| Settlement date: | Oct. 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.875%
|
| Cusip: | 40435UB78
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