Published on 10/4/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $739,000 autocallable contingent income barrier notes tied to three stocks
By Kiku Steinfeld
Chicago, Oct. 4 – HSBC USA Inc. priced $739,000 of autocallable contingent income barrier notes due Dec. 23, 2020 linked to the lesser performing of the common stocks of Chevron Corp., Goldman Sachs Group, Inc. and Microsoft Corp., according to an 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9% if each stock closes at or above its coupon trigger level, 60% of its initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date starting after six months.
The payout at maturity will be par plus the final coupon unless any stock finishes below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the worst-performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Chevron Corp., Goldman Sachs Group, Inc. and Microsoft Corp.
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| Amount: | $739,000
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| Maturity: | Dec. 23, 2020
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| Coupon: | 9%, payable quarterly if each stock closes at or above 60% coupon barrier level on observation date for that quarter
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| Price: | Par
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| Call: | At par if each stock closes at or above the initial price on any quarterly observation date starting after six months
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| Payout at maturity: | If each stock finishes at or above 60% trigger level, par; otherwise, 1% loss for each 1% decline of the worst-performing stock from its initial level
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| Initial levels: | $124.18 for Chevron, $217.08 for Goldman and $138.52 for Microsoft
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| Coupon barrier levels: | $74.508 for Chevron, $130.248 for Goldman and $83.112 for Microsoft; 60% of initial prices
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| Trigger levels: | $74.508 for Chevron, $130.248 for Goldman and $83.112 for Microsoft; 60% of initial prices
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| Pricing date: | Sept. 18
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| Settlement date: | Sept. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.25%
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| Cusip: | 40435UXV1
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