Published on 2/20/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.92 million autocallable securities with contingent coupon on three indexes
By Sarah Lizee
Olympia, Wash., Feb. 20 – HSBC USA Inc. priced $2.92 million of autocallable securities with contingent coupon and contingent downside due Feb. 20, 2024 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 7.75% per year if each index closes at or above its coupon trigger, 75% of its initial level, on the observation date for that quarter.
Beginning Aug. 14, 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 75% barrier 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 securities with contingent coupon and contingent downside
|
| Underlying indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
|
| Amount: | $2,923,000
|
| Maturity: | Feb. 20, 2024
|
| Coupon: | 7.75% per year, payable quarterly if each index closes at or above coupon trigger on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below barrier level, in which case 1% loss for every 1% that least-performing index declines from initial level
|
| Call: | Beginning Aug. 14, automatically at par if each index closes at or above initial level on any quarterly call observation date
|
| Initial levels: | 3,380.16 for S&P, 1,687.584 for Russell and 3,840.97 for Stoxx
|
| Coupon triggers: | 2,535.12 for S&P, 1,265.688 for Russell and 2,880.7275 for Stoxx, or 75% of initial levels
|
| Barrier levels: | 2,535.12 for S&P, 1,265.688 for Russell and 2,880.7275 for Stoxx, or 75% of initial levels
|
| Pricing date: | Feb. 14
|
| Settlement date: | Feb. 20
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40435U6F6
|
|
|
© 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.
