By Wendy Van Sickle
Columbus, Ohio, Nov. 30 – UBS AG, London Branch priced $8.94 million of trigger autocallable contingent yield notes due Dec. 2, 2020 linked to the least performing of the iShares MSCI EAFE ETF and the iShares Russell 2000 ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 6.6% per year if the shares of each fund close at or above the coupon barrier level, 70% of the initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 plus the coupon if the shares of each fund close at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price of each fund is greater than or equal to the downside threshold level, 70% of the initial share price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price of the laggard fund is less than the initial share price.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying ETFs: | iShares MSCI EAFE ETF and iShares Russell 2000 ETF
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Amount: | $8,943,590
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Maturity: | Dec. 2, 2020
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Contingent coupon: | 6.6%, payable quarterly if each fund closes at or above coupon barrier level on observation date for that quarter
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Price: | Par of $10
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Payout at maturity: | Par unless either fund finishes below downside threshold level, in which case 1% loss for each 1% decline of worse performing fund from initial level
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Call: | After six months, automatically at par if each fund closes at or above initial level on any quarterly observation date other than the final one
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Initial prices: | $152.86 for Russell, $70.32 for EAFE
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Coupon barriers: | $107.00 for Russell, $49.22 for EAFE, 70% of initial prices
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Downside thresholds: | $107.00 for Russell, $49.22 for EAFE, 70% of initial prices
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Pricing date: | Nov. 28
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Settlement date: | Nov. 30
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40435H160
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