Published on 12/9/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.69 million callable contingent income barrier notes on three indexes
By Sarah Lizee
Olympia, Wash., Dec. 9 – HSBC USA Inc. priced $1.69 million of callable contingent income barrier notes due Nov. 30, 2026 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Euro Stoxx 50 index, 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 7.25% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes are callable quarterly at par starting June 1, 2020.
The payout at maturity will be par 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: | Callable contingent income barrier notes
|
| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Euro Stoxx 50 index
|
| Amount: | $1,693,000
|
| Maturity: | Nov. 30, 2026
|
| Coupon: | 7.25%, payable quarterly if each index closes at or above coupon barrier on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing index
|
| Call: | Callable quarterly at par starting June 1, 2020
|
| Initial levels: | 8,371.928 for Nasdsaq, 1,621.904 for Russell and 3,707.68 for Stoxx
|
| Coupon barriers: | 5,860.3496 for Nasdaq, 1,135.3328 for Russell and 2,595.376 for Stoxx; 70% of its initial level
|
| Trigger levels: | 5,023.1568 for Nasdaq, 973.1424 for Russell and 2,224.608 for S&P; 60% of initial levels
|
| Pricing date: | Nov. 25
|
| Settlement date: | Nov. 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.75%
|
| Cusip: | 40435UL77
|
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