Published on 8/14/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $557,000 contingent income barrier autocalls on Nasdaq, Russell, S&P
By Sarah Lizee
Olympia, Wash., Aug. 14 – HSBC USA Inc. priced $557,000 of autocallable contingent income barrier notes due Nov. 5, 2021 linked to the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 11% if each index closes at or above the coupon trigger level, 70% of the initial level, on the observation date for that month.
The notes will be called at par plus the coupon if each index closes at or above the initial price on any monthly observation date starting Nov. 2.
If the notes are not called and each index finishes at or above the 70% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Nasdaq-100, Russell 2000, S&P 500
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| Amount: | $557,000
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| Maturity: | Nov. 5, 2021
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| Coupon: | 11%, payable monthly if each index closes at or above coupon trigger level on observation date for that month
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above 70% barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing index from initial level
|
| Call: | At par plus coupon if each index closes at or above initial price on any monthly observation date starting Nov. 2
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| Initial levels: | 3,271.12 for S&P, 1,480.427 for Russell, 10,905.88 for Nasdaq
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| Coupon trigger/barrier levels: | 70% of initial prices
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| Pricing date: | July 31
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| Settlement date: | Aug. 5
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40438CPQ8
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