Published on 1/29/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $16.99 million callable contingent income barrier notes on Stoxx Banks, S&P 500
By Wendy Van Sickle
Columbus, Ohio, Jan. 29 – HSBC USA Inc. priced $16.99 million of callable contingent income barrier notes due Jan. 30, 2030 linked to the Euro Stoxx Banks index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate 10% if each index closes at or above the coupon trigger level, 70% of the initial level, on the observation date for that quarter.
The notes will be callable at par plus any coupon due on any quarterly observation date.
If the notes are not called and each index finishes at or above the 50% barrier level, the payout at maturity will be par plus the final coupon, if any. Otherwise, investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Euro Stoxx Banks index, S&P 500
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| Amount: | $16.99 million
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| Maturity: | Jan. 30, 2030
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| Coupon: | 10%, payable quarterly if each index closes at or above coupon trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above 50% barrier level, par plus any final coupon; otherwise, 1% loss for each 1% decline of the least-performing index from initial level
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| Call option: | At par plus any coupon on any quarterly observation date
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| Initial levels: | 91.5 for Euro Stoxx Banks and 3,243.63 for S&P
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| Coupon trigger: | 64.05 for Euro Stoxx Banks and 2,270.541 for S&P, 70% of initial prices
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| barrier levels: | 47.45 for Euro Stoxx Banks and 1,621.815 for S&P, 50% of initial prices
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| Pricing date: | Jan. 27
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| Settlement date: | Jan. 30
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 4.7%
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| Cusip: | 40435U3E2
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