Published on 9/22/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.58 million contingent income barrier autocalls on Nasdaq, Russell, S&P
Kiku Steinfeld
Chicago, Sept. 22 – HSBC USA Inc. priced $2.58 million of autocallable contingent income barrier notes due Sept. 16, 2030 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 quarterly coupon at an annualized rate of 6% if each index closes at or above the on coupon barrier level, 70% of the initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each index closes at or above the initial price on any quarterly observation date after one year.
If the notes are not called and each index finishes at or above the 65% barrier level, the payout at maturity will be par plus any 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.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Nasdaq-100, Russell 2000, S&P 500
|
| Amount: | $2,581,000
|
| Maturity: | Sept. 16, 2030
|
| Coupon: | 6%, payable quarterly if each index closes at or above 70% coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above 65% barrier level, par plus any 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 quarterly observation date after one year
|
| Initial levels: | 11,154.12 for Nasdaq, 1,507.751 for Russell, 3,339.19 for S&P
|
| Coupon barrier levels: | 70% of initial prices
|
| Barrier levels: | 65% of initial prices
|
| Pricing date: | Sept. 10
|
| Settlement date: | Sept. 15
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 4.25%
|
| Cusip: | 40438CVS7
|
|
|
© 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.
