Published on 10/4/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $919,000 contingent income barrier notes linked to Euro Stoxx, Russell
By Angela McDaniels
Tacoma, Wash., Oct. 4 – HSBC USA Inc. priced $919,000 of callable contingent income barrier notes due Oct. 1, 2029 linked to the lesser performing of the Russell 2000 index and the Euro Stoxx 50 index, 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 8.5% if each index closes at or above its coupon trigger, 75% of its initial level, on the observation date for that period.
Beginning Sept. 28, 2020, the notes are callable at par quarterly.
The payout at maturity will be par unless either index finishes below its barrier value, 60% of its initial level, in which case investors will be exposed to the decline of the lesser-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying indexes: | Russell 2000 and Euro Stoxx 50
|
| Amount: | $919,000
|
| Maturity: | Oct. 1, 2029
|
| Coupon: | 8.5%, payable quarterly if each index closes at or above coupon trigger on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier value, par; otherwise, exposure to decline of lesser-performing index
|
| Call option: | At par quarterly beginning Sept. 28, 2020
|
| Initial levels: | 3,513.03 for Euro Stoxx 50 and 1,550.654 for Russell 2000
|
| Coupon triggers: | 2,634.7725 for Euro Stoxx 50 and 1,162.9905 for Russell 2000, or 75% of initial levels
|
| Barrier values: | 2,107.818 for Euro Stoxx 50 and 930.3924 for Russell 2000, or 60% of initial levels
|
| Pricing date: | Sept. 25
|
| Settlement date: | Sept. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 40435UXW9
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
