Published on 4/5/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $500,000 dual directional knock-out notes linked to S&P 500
By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $500,000 of 0% dual directional knock-out notes due April 9, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event occurs if the index closes above the upside knock-out level, 117.2% of the initial index level, or below the downside knock-out level, 70% of the initial index level, on any day from and including the pricing date through but excluding April 6, 2021.
If a knock-out event has not occurred and the final index level is less than the initial index level, the payout at maturity will be par plus the absolute value of the index return, subject to a maximum return of 30%.
If a knock-out event has not occurred and the final index level is greater than or equal to the initial index level, the payout will be par plus the lesser of the index return and 17.2%.
If a knock-out event has occurred, the payout will be par.
HSBC Securities (USA) Inc., JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Dual directional knock-out notes
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Underlying index: | S&P 500
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Amount: | $500,000
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Maturity: | April 9, 2021
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If knock-out event has not occurred and final index level is less than initial index level, par plus lesser of absolute value of index return and 30%; if knock-out event has not occurred and final index level is greater than or equal to initial index level, par plus lesser of index return and 17.2%; if knock-out event has occurred, par
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Knock-out event: | Index closes above upside knock-out level or below downside knock-out level on any day from and including pricing date through but excluding March 23, 2021
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Initial level: | 2,834.4
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Final level: | Average of index’s closing levels on five trading days ending April 6, 2021
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Upside knock-out: | 3,321.92, 117.2% of initial level
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Downside knock-out: | 1,984.08, 70% of initial level
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Pricing date: | March 29
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Settlement date: | April 3
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Agents: | HSBC Securities (USA) Inc., JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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Fees: | 1.5%
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Cusip: | 40435ULL6
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