Published on 12/30/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $647,000 autocallable barrier notes linked to S&P 500, biotech ETF
By Angela McDaniels
Tacoma, Wash., Dec. 30 – HSBC USA Inc. priced $647,000 of 0% autocallable barrier notes with step-up premium due Jan. 2, 2024 linked to the S&P 500 index and the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus a call premium of 13.4% if each underlying closes at or above its call level, 90% of its initial level, on any annual observation date.
If the final return of the lesser-performing underlying is less than negative 10% – and therefore the notes are not called – but greater than or equal to negative 30%, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing underlying’s final level is less than its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium
|
| Underlyings: | S&P 500 index and SPDR S&P Biotech ETF
|
| Amount: | $647,000
|
| Maturity: | Jan. 2, 2024
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final return of lesser-performing underlying is less than negative 10% but greater than or equal to negative 30%, par; otherwise, 1% loss for every 1% that lesser-performing underlying’s final level is less than initial level
|
| Call: | Automatically at par plus call premium of 13.4% per year if each underlying closes at or above call level, 90% of initial level, on any annual observation date
|
| Initial levels: | 3,221.22 for index and $96.70 for ETF
|
| Barrier value: | 2,254.854 for index and $67.69 for ETF, or 70% of initial levels
|
| Pricing date: | Dec. 20
|
| Settlement date: | Dec. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40435UN75
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