Published on 11/8/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.34 million 6% autocallable yield notes linked to indexes
By Angela McDaniels
Tacoma, Wash., Nov. 8 – HSBC USA Inc. priced $1.34 million of 6% autocallable yield notes due Feb. 5, 2021 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
Beginning April 30, 2020, the notes will be automatically called at par if each index closes at or above its initial level on any quarterly call observation date.
If the notes are not called, the payout at maturity will be par unless either index closes below its trigger level, 70% of its initial level, during the life of the notes and the lesser-performing index finishes below its initial level, in which case investors will lose 1% for each 1% that the lesser-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $1,338,000
|
| Maturity: | Feb. 5, 2021
|
| Coupon: | 6%, payable monthly
|
| Price: | Par
|
| Call: | Beginning April 30, 2020, automatically at par if each index closes at or above initial level on any quarterly call observation date
|
| Payout at maturity: | Par unless either index closes below trigger price during life of notes and lesser-performing index finishes below initial level, in which case 1% loss for each 1% that lesser-performing index declines from initial level
|
| Initial levels: | 3,037.56 for S&P 500 and 1,562.452 for Russell 2000
|
| Trigger levels: | 2,126.292 for S&P 500 and 1,093.7164 for Russell 2000, or 70% of initial levels
|
| Pricing date: | Oct. 31
|
| Settlement date: | Nov. 5
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 0.375%
|
| Cusip: | 40435UA20
|
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