Published on 8/1/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8.44 million step-down trigger autocallable notes on Russell, the Dow
By Sarah Lizee
Olympia, Wash., Aug. 1 – HSBC USA Inc. priced $8.44 million of step-down trigger autocallable notes due Aug. 1, 2024 linked to the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
After one year, the notes will be automatically called at par of $10 plus 7.9% per year if each asset closes at or above its initial level on any quarterly observation date, except the final one when the call threshold will be the 75% downside threshold level.
If the notes are not subject to an automatic call, that means the final level of at least one asset will be less than its downside threshold, 75% of its initial level, and investors will be exposed to the decline of the lesser-performing asset from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Step-down trigger autocallable notes
|
| Underlying indexes: | Russell 2000 and Dow Jones industrial average
|
| Amount: | $8,438,000
|
| Maturity: | Aug. 1, 2024
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Call: | After one year at par plus 7.9% per year if each asset closes at or above its initial level on any quarterly observation date except the final one, when the call level will be the downside threshold
|
| Payout at maturity: | Full exposure to decline of lesser-performing asset from initial level
|
| Initial levels: | 27,221.35 for Dow, 1,569.025 for Russell
|
| Downside thresholds: | 20,416.01 for Dow, 1,176.769 for Russell, 75% of initial levels
|
| Pricing date: | July 29
|
| Settlement date: | July 31
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40436B428
|
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