Published on 3/30/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million callable contingent income barrier notes on Dow, Russell, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, March 30 – HSBC USA Inc. priced $1 million of callable contingent income barrier notes due March 25, 2027 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, 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 15.25% if each index closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly observation date after one year.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 50% barrier 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.
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| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average, Nasdaq-100 index
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| Amount: | $1 million
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| Maturity: | March 25, 2027
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| Coupon: | 15.25%, payable quarterly if each index closes at or above coupon trigger on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus coupon, if any; otherwise, exposure to decline of worst-performing index
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| Call option: | At par plus any coupon on any quarterly observation date after one year
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| Initial levels: | 1,013.889 for Russell, 19,173.98 for Dow, 6,994.291 for Nasdaq
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| Coupon triggers: | 709.7223 for Russell, 13,421.786 for Dow, 4,896.0037 for Nasdaq, 70% of initial levels
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| Barrier levels: | 506.9445 for Russell, 9,586.99 for Dow, 4,896.0037 for Nasdaq, 50% of initial levels
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| Pricing date: | March 20
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| Settlement date: | March 25
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40438CCK5
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