Published on 3/30/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $69,000 callable contingent income barrier notes on S&P, biotech ETF
By Sarah Lizee
Olympia, Wash., March 30 – HSBC USA Inc. priced $69,000 of callable contingent income barrier notes due March 27, 2023 linked to the SPDR S&P Biotech ETF and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annualized rate of 20.4% if each underlying closes at or above the coupon trigger level, 65% of the initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any observation date.
If the notes are not called and each underlying finishes at or above the 65% barrier level, the payout at maturity will be par plus the final coupon, if any. Otherwise, investors will lose 1% for each 1% decline of the least-performing underlying from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying assets: | S&P 500, SPDR S&P Biotech ETF
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| Amount: | $69,000
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| Maturity: | March 27, 2023
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| Coupon: | 20.4%, payable semiannually if each underlying closes at or above coupon trigger level on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each underlying finishes at or above 65% barrier level, par plus any final coupon; otherwise, 1% loss for each 1% decline of the least-performing underlying from initial level
|
| Call option: | At par plus any coupon on any observation date
|
| Initial levels: | $69.12 for ETF and 2,304.92 for S&P
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| Coupon trigger: | $44.928 for ETF and 1,498.198 for S&P, 65% of initial prices
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| barrier levels: | $44.928 for ETF and 1,498.198 for S&P, 65% of initial prices
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| Pricing date: | March 20
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| Settlement date: | March 27
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435U7D0
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