Published on 3/29/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.55 million callable contingent income barrier notes on Dow, Russell, Nasdaq
Chicago, March 30 – HSBC USA Inc. priced $2.55 million of callable contingent income barrier notes due March 24, 2025 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, 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 10.35% if each index closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly observation date after one year.
The payout at maturity will be par plus the final coupon unless any index finishes below its 60% barrier level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Dow Jones industrial average, Nasdaq-100 index
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| Amount: | $2,547,000
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| Maturity: | March 24, 2025
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| Coupon: | 10.35%, 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 level, par plus coupon; otherwise, exposure to decline of worst-performing index
|
| Call option: | At par plus any coupon on any quarterly observation date after one year
|
| Initial levels: | 991.164 for Russell, 19,898.92 for Dow, 7,175.176 for Nasdaq
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| Coupon trigger/barrier levels: | 594.6984 for Russell, 11,939.352 for Dow, 4,305.1056 for Nasdaq, 60% of initial levels
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| Pricing date: | March 18
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| Settlement date: | March 23
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.625%
|
| Cusip: | 40438CCJ8
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