Published on 1/13/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.61 million autocallable barrier notes linked to Russell, Nasdaq
By Sarah Lizee
Olympia, Wash., Jan. 13 – HSBC USA Inc. priced $1.61 million of 0% autocallable barrier notes due Jan. 14, 2027 linked to the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus 10.3% per year if each index closes at or above its initial level on any annual observation date.
The payout will be par unless any index finishes below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the lesser performing index from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes
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| Underlying indexes: | Nasdaq-100 and Russell 2000
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| Amount: | $1.61 million
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| Maturity: | Jan. 14, 2027
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par if each index par if each index closes at or above barrier level; otherwise, 1% loss for every 1% that lesser-performing index’s final level is less than initial level
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| Call: | Automatically at par plus call premium of 10.3% per year if each index closes at or above initial level on any annual observation date
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| Initial levels: | 8,989.63 for Nasdaq and 1,664.988 for Russell 2000
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| Barrier levels: | 6,292.741 for Nasdaq and 1,165.4916 for Russell 2000, or 70% of initial levels
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| Pricing date: | Jan. 9
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| Settlement date: | Jan. 14
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40435U2Q6
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