Published on 2/23/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.03 million callable contingent income barrier notes on indexes, ETF
By Kiku Steinfeld
Chicago, Feb. 24 – HSBC USA Inc. priced $1.03 million of callable contingent income barrier notes due Feb. 13, 2023 linked to the S&P 500 index, the Russell 2000 index and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
If each asset closes at or above its coupon trigger, 70% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 6.25%.
After one year, the notes will be callable at par plus any coupon on any observation date other than the final one.
If the notes are not called, the payout at maturity will be par plus any final coupon unless any asset finishes below the 60% barrier level, in which case investors will lose 1% for each 1% decline of the worst performing asset from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying assets: | S&P 500 index, Russell 2000 index and Energy Select Sector SPDR fund
|
| Amount: | $1,028,000
|
| Maturity: | Feb. 13, 2023
|
| Coupon: | 6.25% annualized, payable each quarter that each asset closes at or above its coupon barrier on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus any final coupon unless any asset finishes below barrier, in which case 1% loss for each 1% decline of least performing asset from initial level
|
| Call option: | At par plus any coupon on any observation date after one year other than final one
|
| Initial levels: | 3,327.71 for S&P, 1,656.778 for Russell and $53.98 for ETF
|
| Coupon trigger levels: | 2,329.397 for S&P, 1,159.7446 for Russell and $37.786 for ETF; 70% of initial levels
|
| Barrier levels: | 1,996.626 for S&P, 994.0668 for Russell and $32.388 for ETF; 60% of initial levels
|
| Pricing date: | Feb. 7
|
| Settlement date: | Feb. 12
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40435U5R1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
