Published on 12/21/2018 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $421,000 autocallable barrier notes with contingent return on indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 21 – HSBC USA Inc. priced $421,000 of autocallable barrier notes with contingent return due Dec. 21, 2023 linked to the lesser performing of the S&P 500 index, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index closes at or above its coupon trigger, 60% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 7.25%.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date after one year.
The payout will be par plus the final coupon, if any unless each index has finished below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the lesser-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying indexes: | S&P 500, Nasdaq-100, Russell 2000
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| Amount: | $421,000
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| Maturity: | Dec. 21, 2023
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| Coupon: | 7.25% annualized, payable each quarter that each index closes at or above its coupon trigger on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus final coupon, if any, unless either index has finished below barrier level, in which case investors will lose 1% for each 1% decline of lesser-performing index from its initial level
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| Call: | At par if each index closes at or above initial level on any quarterly observation date after one year
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| Initial index levels: | 2,760.17 for S&P, 6,949.014 for Nasdaq and 1,533.266 for Russell
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| Coupon triggers: | 1,527.696 for S&P, 826.3056 for Russell and 3,894.9096 for Nasdaq; 60% of initial levels
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| Barrier levels: | 1,527.696 for S&P, 826.3056 for Russell and 3,894.9096 for Nasdaq; 60% of initial levels
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| Pricing date: | Dec. 18
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| Settlement date: | Dec. 21
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40435UCP7
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