Published on 3/13/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.26 million contingent income barrier autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, March 13 – HSBC USA Inc. priced $2.26 million of autocallable contingent income barrier notes due March 10, 2025 linked to the least performing of the Dow Jones industrial average, 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 6.1% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
Starting March 5, 2021, 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 60% 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.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, S&P 500 index and Russell 2000 index
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| Amount: | $2,256,000
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| Maturity: | March 10, 2025
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| Coupon: | 6.1%, 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: | Starting March 5, 2021 at par plus coupon if each stock closes at or above initial price on any quarterly observation date other than final one
|
| Initial level: | 29,121.28 for Dow, 3,023.94 for S&P and 1,478.824 for Russell
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| Coupon barrier level: | 18,284.896 for Dow, 2,116.758 for S&P and 1,035.1768 for Russell; 70% of initial levels
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| Trigger level: | 15,672.768 for Dow, 1,814.364 for S&P and 887.2944 for Russell; 60% of initial levels
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| Pricing date: | March 5
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| Settlement date: | March 10
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.625%
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| Cusip: | 40438CBN0
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