Published on 12/23/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $326,000 contingent income barrier autocalls on S&P, Russell, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, Dec. 23 – HSBC USA Inc. priced $326,000 of autocallable contingent income barrier notes due Sept. 20, 2021 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 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 5.2% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
After six months, the notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date other than the final one.
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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Nasdaq-100 index
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| Amount: | $326,000
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| Maturity: | Sept. 20, 2021
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| Coupon: | 5.2%, payable quarterly if each index closes at or above coupon barrier on observation date for that period
|
| Price: | Par
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| Payout at maturity: | Par plus any coupon unless any index finishes below its trigger level; otherwise, exposure to decline of worst-performing index
|
| Call: | After six months, at par plus coupon if each stock closes at or above initial price on any quarterly observation date other than final one
|
| Initial level: | 3,192.52 for S&P, 1,657.564 for Russell and 8,575.7 for Nasdaq
|
| Coupon barrier level: | 2,234.764 for S&P, 1,160.2948 for Russell and 6,002.99 for Nasdaq; 70% of initial levels
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| Trigger level: | 2,234.764 for S&P, 1,160.2948 for Russell and 6,002.99 for Nasdaq; 70% of initial levels
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| Pricing date: | Dec. 17
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| Settlement date: | Dec. 20
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40435UV50
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