Published on 7/23/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $301,000 million autocallable barrier notes with step-up premium on index, ETF
By Wendy Van Sickle
Columbus, Ohio, July 23 – HSBC USA Inc. priced $301,000 of 0% autocallable barrier notes with step-up premium and contingent return feature due July 26, 2023 linked to the lesser performing of the Euro Stoxx 50 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each asset closes at or above 90% of its initial level on any annual observation date. The call premium is 11.9% per year.
The payout will be par plus the 10% contingent return unless any asset has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing asset from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium and contingent return
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| Underlying assets: | Euro Stoxx 50 index, iShares MSCI Emerging Markets ETF
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| Amount: | $301,000
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| Maturity: | July 26, 2023
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 10% unless either asset has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing asset from its initial level
|
| Call: | At par plus a call premium if each asset closes at or above 90% of its initial level on any annual observation date; call premium is 11.9% per year
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| Initial levels: | 3,480.18 for index, $42.86 for ETF
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| Barrier levels: | 2,436.126 for index, $30.002 for ETF; 70% of initial levels
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| Pricing date: | July 19
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| Settlement date: | July 26
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40435UQX5
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