Published on 11/12/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $125,000 callable contingent income barrier notes on Stoxx Banks, Russell, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, Nov. 12 – HSBC USA Inc. priced $125,000 of callable contingent income barrier notes due Aug. 4, 2025 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Euro Stoxx Banks index, 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 9% 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 after one year.
The payout at maturity will be par plus the final coupon, if any, 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, Euro Stoxx Banks index, Nasdaq-100 index
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| Amount: | $125,000
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| Maturity: | Aug. 4, 2025
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| Coupon: | 9%, 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 coupon, if any; otherwise, exposure to decline of worst-performing index
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| Call option: | At par plus any coupon on any quarterly observation date after one year
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| Initial levels: | 1,543.275 for Russell, 52.65 for Stoxx Banks, 11,142.76 for Nasdaq
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| Coupon triggers: | 70% of initial levels
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| Barrier levels: | 60% of initial levels
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| Pricing date: | Oct. 28
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| Settlement date: | Nov. 2
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
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| Cusip: | 40438CYY1
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