Published on 3/19/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.27 million contingent income autocalls on three indexes
By Sarah Lizee
Olympia, Wash., March 19 – HSBC USA Inc. priced $1.27 million of autocallable contingent income notes due March 18, 2021 linked to the least performing of the Russell 2000 index, the S&P 500 index and the Nasdaq-100 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 9.2% if each index closes at or above the 80% coupon barrier on the observation date for that period.
The notes will be called at par if each index closes at or above its initial level on any of the first seven determination dates.
The payout at maturity will be par unless any underlying index finishes below its 80% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the underwriter. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income notes
|
| Underlying indexes: | Russell 2000 index, the S&P 500 index and the Nasdaq-100 index
|
| Amount: | $1,268,000
|
| Maturity: | March 18, 2021
|
| Coupon: | 9.2%, payable quarterly if each index closes at or above 80% coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below 80% trigger, in which case 1% loss per 1% decline of worst performing index
|
| Call: | At par if each index closes at or above initial level on any of the first seven determination dates
|
| Initial levels: | 2,822.48 for S&P, 1,553.538 for Russell and 7,306.987 for Nasdaq
|
| Trigger levels: | 2,257.98 for S&P, 1,242.830 for Russell and 5,845.590 for Nasdaq, 80% of initial levels
|
| Pricing date: | March 15
|
| Settlement date: | March 20
|
| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
|
| Fees: | 2%
|
| Cusip: | 40435UJB1
|
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