Published on 8/8/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $500,000 contingent income autocallables linked to Dow, Euro Stoxx
By Angela McDaniels
Tacoma, Wash., Aug. 8 – HSBC USA Inc. priced $500,000 of autocallable contingent income barrier notes due July 31, 2024 linked to the lesser performing of the Dow Jones industrial average and the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9% per year if each index closes at or above its barrier level, 66% of its initial level, on the observation date for that quarter.
Beginning July 28, 2020, the notes will be called at par if each index closes at or above its initial level on any coupon observation date.
The payout at maturity will be par unless either index finishes below its barrier level, in which case investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Dow Jones industrial average and Euro Stoxx Banks
|
| Amount: | $500,000
|
| Maturity: | July 31, 2024
|
| Coupon: | 9% per year, payable quarterly if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index finishes below barrier level, in which case 1% loss for every 1% that lesser-performing index declines from initial level
|
| Call: | Automatically at par if each index closes at or above initial level on any quarterly observation date beginning July 28, 2020
|
| Initial levels: | 27,192.45 for Dow and 89.56 for Euro Stoxx Banks
|
| Barrier levels: | 17,947.017 for Dow and 59.1096 for Euro Stoxx Banks, or 66% of initial levels
|
| Pricing date: | July 26
|
| Settlement date: | July 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4%
|
| Cusip: | 40435USK1
|
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