Published on 6/25/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.08 million trigger callable contingent yield notes on indexes
By Sarah Lizee
Olympia, Wash., June 25 – HSBC USA Inc. priced $5.08 million of trigger callable contingent yield notes with daily coupon observation due June 24, 2022 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 9.15% 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 60% 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.
|
| Issue: | Trigger callable contingent yield notes with daily coupon observation
|
| Underlying indexes: | S&P 500, Russell 2000 and Nasdaq-100
|
| Amount: | $5,084,000
|
| Maturity: | June 24, 2022
|
| Coupon: | 9.15% per year, payable for each quarter that each index closes at or above its coupon barrier on each day that quarter
|
| Price: | Par of $10
|
| 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
|
| Call option: | At par on each quarterly observation date
|
| Initial levels: | 2,950.46 for S&P, 1,549.628 for Russell, 7,728.782 for Nasdaq
|
| Coupon barriers: | 2,065.32 for S&P, 1,084.740 for Russell and 5,410.147 for Nasdaq; 70% of initial levels
|
| Downside thresholds: | 1,770.28 for S&P, 929.777 for Russell and 4,637.269 for Nasdaq; 60% of initial levels
|
| Pricing date: | June 21
|
| Settlement date: | June 26
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 40436B485
|
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