Published on 6/5/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $8.67 million contingent yield trigger autocallables on S&P, Russell
By Marisa Wong
Morgantown, W.Va., June 5 – HSBC USA Inc. priced $8.67 million trigger autocallable contingent yield notes due May 13, 2022 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.05% if each index closes at or above its coupon barrier, 70% of its initial level, on the related quarterly observation date.
The notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the contingent coupon, unless either index finishes below the 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $8,665,250
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| Maturity: | May 13, 2022
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| Coupon: | 9.05%, payable quarterly if each index closes at or above coupon barrier on related quarterly observation date
|
| Price: | Par of $10
|
| Call: | At par plus contingent coupon if each index closes at or above initial level on any quarterly observation date after six months
|
| Payout at maturity: | Par plus final coupon unless either index finishes below downside threshold, in which case 1% loss for each 1% decline of the worse performing index from initial level
|
| Initial levels: | 2,881.40 for S&P, 1,572.993 for Russell
|
| Coupon barriers: | 2,016.98 for S&P, 1,101.095 for Russell; 70% of initial levels
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| Downside thresholds: | 2,016.98 for S&P, 1,101.095 for Russell; 70% of initial levels
|
| Pricing date: | May 10
|
| Settlement date: | May 15
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40436B782
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