Published on 2/10/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $78,000 contingent income barrier autocalls on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Feb. 10 – HSBC USA Inc. priced $78,000 of autocallable contingent income barrier notes due May 5, 2021 linked to the least performing of the S&P 500 index and the Russell 2000 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 7.7% if each index closes at or above its coupon barrier, 80% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any coupon observation date after six months.
The payout at maturity will be par plus the final coupon unless either index closes below the trigger, 80% of the initial level, in which case investors will be fully exposed to the losses of the worse-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index and Russell 2000 index
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| Amount: | $78,000
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| Maturity: | May 5, 2021
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| Coupon: | 7.7% per year, payable quarterly if each index closes at or above coupon barrier on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worse-performing index
|
| Call: | At par plus coupon if each index closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | 1,614.061 for Russell and 3,225.52 for S&P
|
| Coupon barriers: | 1,291.2488 for Russell and 2,580.416 for S&P; 80% of initial levels
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| Trigger levels: | 1,291.2488 for Russell and 2,580.416 for S&P; 80% of initial levels
|
| Pricing date: | Jan. 31
|
| Settlement date: | Feb. 5
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
|
| Cusip: | 40435U2L7
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