Published on 10/28/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.28 million contingent income autocallables linked to three indexes
By Angela McDaniels
Tacoma, Wash., Oct. 28 – HSBC USA Inc. priced $1.28 million of autocallable contingent income barrier notes due Oct. 29, 2024 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes pay a contingent coupon at the rate of 9% per year if each index closes at or above its coupon trigger, 70% of its initial level, on the observation date for that month.
Beginning Oct. 26, 2020, the notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.
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 lose 1% for every 1% that the least-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, Russell 2000 and Euro Stoxx Banks
|
| Amount: | $1,282,000
|
| Maturity: | Oct. 29, 2024
|
| Coupon: | 9% per year, payable monthly if each index closes at or above coupon trigger on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below barrier value, in which case 1% loss for every 1% that least-performing index declines from initial level
|
| Call: | Beginning Oct. 26, 2020, automatically at par if each index closes at or above initial level on any quarterly call observation date
|
| Initial levels: | 26,805.53 for Dow, 1,550.18 for Russell 2000 and 92.88 for Euro Stoxx Banks
|
| Coupon triggers: | 18,763.871 for Dow, 1,085.126 for Russell 2000 and 65.016 for Euro Stoxx Banks, or 70% of initial levels
|
| Barrier values: | 16,083.318 for Dow, 930.108 for Russell 2000 and 55.728 for Euro Stoxx Banks, or 60% of initial levels
|
| Pricing date: | Oct. 24
|
| Settlement date: | Oct. 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.625%
|
| Cusip: | 40435UB94
|
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