Published on 10/28/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.82 million contingent income barrier notes linked to indexes
By Angela McDaniels
Tacoma, Wash., Oct. 28 – HSBC USA Inc. priced $1.82 million of callable contingent income barrier notes due Oct. 29, 2029 linked to the least performing of the Nasdaq-100 index, the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 8.15% if each index closes at or above its coupon trigger, 70% of its initial level, on the observation date for that period.
Beginning Oct. 26, 2020, the notes are callable at par quarterly.
The payout at maturity will be par unless any index finishes below its barrier value, 60% of its initial level, in which case investors will be exposed to the decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying indexes: | Nasdaq-100, Euro Stoxx 50 and Russell 2000
|
| Amount: | $1,816,000
|
| Maturity: | Oct. 29, 2029
|
| Coupon: | 8.15%, payable quarterly if each index closes at or above coupon trigger on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier value, par; otherwise, exposure to decline of least-performing index
|
| Call option: | At par quarterly beginning Oct. 26, 2020
|
| Initial levels: | 7,966.719 for Nasdaq-100, 3,621.37 for Euro Stoxx 50 and 1,550.180 for Russell 2000
|
| Coupon triggers: | 5,576.7033 for Nasda-100, 2,534.959 for Euro Stoxx 50 and 1,085.126 for Russell 2000, or 70% of initial levels
|
| Barrier values: | 4,780.0314 for Nasdaq-100, 2,172.822 for Euro Stoxx 50 and 930.108 for Russell 2000, or 60% of initial levels
|
| Pricing date: | Oct. 24
|
| Settlement date: | Oct. 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4%
|
| Cusip: | 40435UC28
|
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