Published on 10/7/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $775,000 autocallable contingent income barrier notes tied to three stocks
By Sarah Lizee
Olympia, Wash., Oct. 7 – HSBC USA Inc. priced $775,000 of autocallable contingent income barrier notes due April 4, 2022 linked to the lesser performing of the common stocks of Home Depot, Inc., Lowe’s Cos., Inc. and Walmart Inc., 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 11.75% if each stock closes at or above its coupon trigger level, 70% 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.
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.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Home Depot, Inc., Lowe’s Cos., Inc. and Walmart Inc.
|
| Amount: | $775,000
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| Maturity: | April 4, 2022
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| Coupon: | 11.75%, payable quarterly if each stock closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
|
| Call: | At par if each stock closes at or above the initial price on any quarterly observation date
|
| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, 1% loss for each 1% decline of the worst-performing stock from its initial level
|
| Initial levels: | $229.86 for Home Depot, $109.54 for Lowe’s and $118.45 for Walmart
|
| Coupon barrier levels: | $160.902 for Home Depot, $76.678 for Lowe’s and $82.915 for Walmart; 70% of initial prices
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| Trigger levels: | $160.902 for Home Depot, $76.678 for Lowe’s and $82.915 for Walmart; 70% of initial prices
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| Pricing date: | Sept. 27
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| Settlement date: | Oct. 3
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3%
|
| Cusip: | 40435UYR9
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