Published on 12/28/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $500,000 contingent income barrier callables on three indexes
By Kiku Steinfeld
Chicago, Dec. 28 – HSBC USA Inc. priced $500,000 of callable contingent income barrier notes due Dec. 17, 2029 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 8.71% if each index closes at or above its coupon barrier level, 75% of its initial index level, on valuation date for that quarter.
HSBC may call the notes at par plus any coupon on any quarterly valuation date prior to the final valuation date.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 60% barrier 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: | Callable contingent income barrier notes
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $500,000
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| Maturity: | Dec. 17, 2029
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| Coupon: | 8.71% per year, payable quarterly if each index closes at or above coupon barrier on related valuation date
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon, if any, unless any index finishes below its 60% barrier level, in which case investors will be fully exposed to the decline of lowest performing index
|
| Call option: | At par plus any coupon on any quarterly valuation date prior to final valuation date
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| Initial levels: | 3,687.45 for Euro Stoxx, 3,141.63 for S&P, 1,631.926 for Russell
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| Coupon barriers: | 2,765.5875 for Euro Stoxx, 2,356.2225 for S&P, 1,223.9445 for Russell; 75% of initial levels
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| Barrier levels: | 2,212.47 for Euro Stoxx, 1,884.978 for S&P, 979.1556 for Russell; 60% of initial levels
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| Pricing date: | Dec. 11
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| Settlement date: | Dec. 16
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40435UU51
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