Published on 8/27/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $569,000 callable notes with contingent return on index, ETF
By Wendy Van Sickle
Columbus, Ohio, Aug. 27 – HSBC USA Inc. priced $569,000 of callable notes with contingent return due Aug. 30, 2022 linked to the SPDR S&P Biotech exchange-traded fund and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 10.2% if each asset closes at or above the 65% coupon trigger level on the related observation date.
HSBC may call the notes on any semiannual coupon payment date.
The payout at maturity will be par plus the final contingent coupon unless either asset finishes below its 65% barrier level, in which case investors will be fully exposed to any losses of the worse performing asset.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
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| Underlying assets: | SPDR S&P Biotech ETF and S&P 500 index
|
| Amount: | $569,000
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| Maturity: | Aug. 30, 2022
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| Coupon: | 10.2%, payable semiannually if each asset closes at or above coupon trigger on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless either asset finishes below barrier value, in which case full exposure to losses of worse performing asset
|
| Call option: | At par on any semiannual coupon payment date
|
| Initial values: | $79.44 for biotech ETF and 2,847.11 for index
|
| Coupon triggers: | $47.664 for biotech ETF and 1,850.6215 for index; 65% of initial values
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| Barrier values: | $47.664 for biotech ETF and 1,850.6215 for index; 65% of initial values
|
| Pricing date: | Aug. 23
|
| Settlement date: | Aug. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0%
|
| Cusip: | 40435UTL8
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