Published on 12/30/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.09 million dual directional buffered notes linked to Dow, Nasdaq
By Angela McDaniels
Tacoma, Wash., Dec. 30 – HSBC USA Inc. priced $1.09 million of 0% dual directional buffered notes due June 28, 2021 linked to the lesser performing of the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final level of the lesser-performing index is greater than its initial level, the payout at maturity will be par plus the lesser-performing index’s return, subject to a maximum return of 20%.
If the final level of the lesser-performing index is less than or equal to its initial level but greater than or equal to its buffer value, 90% of its initial level, the payout will be par plus the absolute value of the lesser-performing index’s return.
If the final level of the lesser-performing index is less than its buffer value, investors will lose 1% for every 1% that the lesser-performing index declines beyond 10%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Dual directional buffered notes
|
| Underlying indexes: | Dow Jones industrial average and Nasdaq-100
|
| Amount: | $1,093,000
|
| Maturity: | June 28, 2021
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final level of lesser-performing index is greater than initial level, par plus lesser-performing index’s return, subject to maximum return of 20%; if final level of lesser-performing index is less than or equal to initial level but greater than or equal to buffer value, par plus absolute value of lesser-performing index’s return; if final level of lesser-performing index is less than buffer value, investors will lose 1% for every 1% that lesser-performing index declines beyond 10%
|
| Initial level: | 28,376.96 for Dow and 8,641.291 for Nasdaq-100
|
| Buffer value: | 25,539.264 for Dow and 7,777.1619 for Nasdaq-100, or 90% of initial levels
|
| Pricing date: | Dec. 19
|
| Settlement date: | Dec. 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40435UQ56
|
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