Published on 8/5/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.35 million callable notes with contingent return on three indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 5 – HSBC USA Inc. priced $1.35 million of callable notes with contingent return due Aug. 2, 2021 linked to the Russell 2000 index, the Dow Jones industrial average 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 annual rate of 7.2% if each index closes above its 70% coupon barrier on observation date.
The notes will be callable at par plus any coupon due on any quarterly payment date.
The payout at maturity will be par plus the final coupon unless any index finishes below its 70% barrier level, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable notes with contingent return
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Underlying indexes: | Nasdaq-100, Dow Jones industrial average, Russell 2000
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Amount: | $1.35 million
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Maturity: | Aug. 2, 2021
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Coupon: | 7.2%, payable quarterly if each index closes above 70% of initial level on observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon payment unless any index finishes below its barrier level, in which case investors will be fully exposed to any losses of the worst performing index
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Call: | At par plus any coupon due on any quarterly payment date
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Initial levels: | 7,952.473 for Nasdaq, 1,585.599 for Russell, 27,198.02 for Dow
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Coupon barrier/barrier: | 5,566.7311 for Nasdaq, 1,109.9193 for Russell, 19,038.614 for Dow, 70% of initial levels
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Pricing date: | July 31
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Settlement date: | Aug. 5
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1%
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Cusip: | 40435UUQ5
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