Published on 6/19/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $14.34 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, June 19 – HSBC USA Inc. priced $14.34 million of trigger callable contingent yield notes with daily coupon observation due Dec. 17, 2021 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon if each index closes at or above its coupon barrier, 70% of its initial level, on each day that quarter. The contingent coupon rate is 9.63% per year.
The notes are callable at par of $10 on each quarterly observation date.
If the notes are not called and each index finishes at or above its 65% downside threshold, the payout at maturity will be par.
Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500, Russell 2000 and Nasdaq-100
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| Amount: | $14,344,700
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| Maturity: | Dec. 17, 2021
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| Coupon: | 9.63% per year, payable for each quarter that each index closes at or above its coupon barrier on each day that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold, par plus contingent coupon; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | At par on each quarterly observation date
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| Initial levels: | 2,866.98 for S&P, 1,522.499 for Russell, 7,479.111 for Nasdaq
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| Coupon barriers: | 2,020.89 for S&P, 1,065.624 for Russell and 5,235.378 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 1,876.54 for S&P, 989.624 for Russell and 4,861.422 for Nasdaq; 65% of initial levels
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| Pricing date: | June 14
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| Settlement date: | June 19
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 1.25%
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| Cusip: | 40436B568
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