Published on 1/28/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $633,000 contingent income barrier autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 28 – HSBC USA Inc. priced $633,000 of autocallable contingent income barrier notes due Jan. 28, 2030 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 8.75% if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date for that period.
After one year, 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, unless any index finishes below its 80% 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: | Nasdaq-100 index, Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $633,000
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| Maturity: | Jan. 28, 2030
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| Coupon: | 8.75%, 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 one year at par plus coupon if each stock closes at or above initial price on any quarterly observation date other than final one
|
| Initial level: | 9,188.575 for Nasdaq, 1,684.463 for Russell and 3,769.79 for Stoxx
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| Coupon barrier level: | 7,350.86 for Nasdaq, 1,347.5704 for Russell and 3,025.832 for Stoxx; 80% of initial levels
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| Trigger level: | 7,350.86 for Nasdaq, 1,347.5704 for Russell and 3,025.832 for Stoxx; 80% of initial levels
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| Pricing date: | Jan. 22
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| Settlement date: | Jan. 27
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4.5%
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| Cusip: | 40435U2T0
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