Published on 4/8/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.76 million autocallable securities with contingent coupon on three indexes
Chicago, April 8 – HSBC USA Inc. priced $1.76 million of autocallable securities with contingent coupon and contingent downside due March 21, 2024 linked to the least performing of the S&P 500 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 pay a contingent coupon at the rate of 23.8% per year if each index closes at or above its coupon trigger, 75% of its initial level, on the observation date for that quarter.
Beginning Sept. 18, the notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.
The payout at maturity will be par unless any index finishes below its 75% barrier level, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable securities with contingent coupon and contingent downside
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| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $1,760,000
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| Maturity: | March 21, 2024
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| Coupon: | 23.8% per year, payable quarterly if each index closes at or above coupon trigger on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below barrier level, in which case 1% loss for every 1% that least-performing index declines from initial level
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| Call: | Beginning Sept. 18, automatically at par if each index closes at or above initial level on any quarterly call observation date
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| Initial levels: | 2,398.10 for S&P, 991.160 for Russell and 2,385.82 for Stoxx
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| Coupon triggers: | 1,798.575 for S&P, 743.370 for Russell and 1,789.365 for Stoxx, or 75% of initial levels
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| Barrier levels: | 1,798.575 for S&P, 743.370 for Russell and 1,789.365 for Stoxx, or 75% of initial levels
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| Pricing date: | March 18
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| Settlement date: | March 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40438CBE0
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