Published on 11/21/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $64,000 autocallable contingent income barrier notes on indexes
By Kiku Steinfeld
Chicago, Nov. 21 – HSBC USA Inc. priced $64,000 autocallable contingent income barrier notes due Dec. 7, 2020 linked to the least performing of the Russell 2000 index and the Nasdaq-100 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 8.7% if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date for 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 monthly coupon observation date after six months.
The payout at maturity will be par plus the final coupon unless either index finishes below 80% 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.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Russell 2000, Nasdaq-100
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| Amount: | $64,000
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| Maturity: | Dec. 7, 2020
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| Coupon: | 8.7%, payable monthly if each index closes at or above coupon barrier level on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon unless either index finishes below 80% 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 monthly call observation date after six months
|
| Initial level: | 8,083.833 for Nasdaq, 1,562.452 for Russell
|
| Coupon barrier: | 6,467.0664 for Nasdaq, 1,249.9616 for Russell, 80% of initial levels
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| Trigger level: | 6,467.0664 for Nasdaq, 1,249.9616 for Russell, 80% of initial levels
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| Pricing date: | Oct. 31
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| Settlement date: | Nov. 5
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435UA79
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