Published on 1/29/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $922,000 contingent income barrier autocallables on AT&T, Verizon
By Wendy Van Sickle
Columbus, Ohio, Jan. 29 – HSBC USA Inc. priced $922,000 of autocallable contingent income barrier notes due Jan. 30, 2020 linked to the least performing of the common stocks of AT&T Inc. and Verizon Communications Inc., 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 stock closes at or above its trigger level, 75% 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.
The payout at maturity will be par plus the final coupon unless either 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | AT&T Inc. and Verizon Communications Inc.
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| Amount: | $922,000
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| Maturity: | Jan. 30, 2020
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| Coupon: | 9%, payable quarterly if each stock closes at or above trigger level on determination date for that period
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| Call: | At par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date
|
| Price: | Par
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| 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
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| Initial level: | $30.66 for AT&T, $56.40 for Verizon
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| Trigger/barrier level: | $22.995 for AT&T, $42.30 for Verizon, 75% of initial price
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| Pricing date: | Jan. 25
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| Settlement date: | Jan. 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435UEH3
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