Published on 3/15/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $521,000 callable contingent income barrier notes on Dow, Russell, Stoxx Banks
Chicago, March 16 – HSBC USA Inc. priced $521,000 of callable contingent income barrier notes due March 5, 2025 linked to the least performing of the Euro Stoxx Banks index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 11% if each index closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly observation date on or after March 5, 2021.
The payout at maturity will be par plus any final coupon due unless any index finishes below its 60% barrier level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average, Euro Stoxx Banks index
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| Amount: | $521,000
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| Maturity: | March 5, 2025
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| Coupon: | 11%, payable quarterly if each index closes at or above coupon trigger on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus any coupon due; otherwise, exposure to decline of worst-performing index
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| Call option: | At par plus any coupon on any quarterly observation date on or after March 5, 2021
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| Initial levels: | 1,518.491 for Russell, 26,703.32 for Dow, 82.36 for Stoxx Banks
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| Coupon trigger levels: | 1,062.9437 for Russell, 18,692.324 for Dow, 57.652 for Stoxx Banks, 70% of initial levels
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| Final barrier levels: | 911.0946 for Russell, 16,021.992 for Dow, 49.416 for Nasdaq, 60% of initial levels
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| Pricing date: | March 2
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| Settlement date: | March 5
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40438CBJ9
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