Published on 8/7/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million contingent income barrier autocalls on Stoxx Banks, Dow
By Kiku Steinfeld
Chicago, Aug. 7 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due July 31, 2029 linked to the least performing of the Euro Stoxx Banks index and Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission
Each quarter, the notes will pay a contingent coupon at an annual rate of 12% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any coupon observation date after one year.
The payout at maturity will be par plus the final coupon unless any index closes below the 75% coupon barrier level. If both indexes close below the coupon barrier but above the trigger, 60% of the initial level, investors will receive par. If any index falls by more than 60%, investors will be fully exposed to the losses of the worst-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Euro Stoxx Banks index and Dow Jones industrial average
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| Amount: | $1,000,000
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| Maturity: | July 31, 2029
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| Coupon: | 12% per year, payable quarterly if each index closes at or above coupon barrier on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing index
|
| Call: | At par plus coupon if each index closes at or above initial level on any quarterly call observation date after one year
|
| Initial levels: | 89.56 for Stoxx, 27,192.45 for Dow
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| Coupon barriers: | 67.17 for Stoxx, 20,394.3375 for Dow; 75% of initial levels
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| Trigger levels: | 53.736 for Stoxx, 16,315.47 for Dow; 60% of initial levels
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| Pricing date: | July 26
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| Settlement date: | July 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 5%
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| Cusip: | 40435USJ4
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