Published on 3/5/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $10 million step-down trigger autocallable notes on Dow, Nasdaq
By Sarah Lizee
Olympia, Wash., March 5 – HSBC USA Inc. priced $10 million of step-down trigger autocallable notes due March 6, 2025 linked to the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
After one year, the notes will be automatically called at par of $10 plus 10.35% per year if each asset closes at or above its initial level on any quarterly observation date, except the final one when the call threshold will be the 70% downside threshold level.
If the notes are not subject to an automatic call, that means the final level of at least one asset will be less than its downside threshold, 70% of its initial level, and investors will be exposed to the decline of the lesser-performing asset from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Step-down trigger autocallable notes
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| Underlying indexes: | Dow Jones industrial average and Nasdaq-100
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| Amount: | $10 million
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| Maturity: | March 6, 2025
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| Coupon: | 0%
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| Price: | Par of $10
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| Call: | After one year at par plus 10.35% per year if each asset closes at or above its initial level on any quarterly observation date except the final one, when the call level will be the downside threshold
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| Payout at maturity: | Full exposure to decline of lesser-performing asset from initial level
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| Initial levels: | 25,409.36 for Dow, 8,461.835 for Nasdaq
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| Downside thresholds: | 17,786.55 for Dow, 5,923.285 for Nasdaq, 70% of initial levels
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| Pricing date: | March 2
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| Settlement date: | March 5
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40438J601
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