Published on 11/2/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $844,000 contingent income barrier autocallables on Nvidia, Lowe’s, Delta
By Wendy Van Sickle
Columbus, Ohio, Nov. 2 – HSBC USA Inc. priced $844,000 of autocallable contingent income barrier notes due Nov. 1, 2021 linked to the least performing of the common stocks of Nvidia Corp., Lowe’s Cos., Inc. and Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 9.9% if each stock closes at or above its trigger level, 50% of its initial share price, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date after six months.
The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Nvidia Corp., Lowe’s Cos., Inc. and Delta Air Lines, Inc.
|
| Amount: | $844,000
|
| Maturity: | Nov. 1, 2021
|
| Coupon: | 9.9%, payable monthly if each stock closes at or above trigger level on determination date for that period
|
| Call: | At par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date after six months
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, number of shares of the worst-performing stock equal to $1,000 divided by initial share price
|
| Initial level: | $189.29 for Nvidia, $93.78 for Lowe;s, $53.28 for Delta
|
| Trigger/barrier level: | $99.125 for Nvidia, $46.89 for Lowe;s, $26.64 for Delta, 50% of initial price
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.35%
|
| Cusip: | 40435F5Z6
|
|
|
© 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.
