Published on 8/7/2019 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.7 million autocallable contingent income barrier notes tied to three stocks
By Kiku Steinfeld
Chicago, Aug. 7 – HSBC USA Inc. priced $1.7 million of autocallable contingent income barrier notes due July 26, 2021 linked to the common stocks of CVS Health Corp., Apple Inc. and salesforce.com, inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 18.4% if each stock closes at or above the barrier level, 70% of the initial level, on the determination date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above the initial price on any quarterly observation date beginning Jan. 22, 2020.
The payout at maturity will be par plus the contingent coupon unless any stock finishes below the 70% trigger level, in which case investors will receive a number of shares of the worst performing stock equal to the principal amount divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | CVS Health Corp., Apple Inc. and salesforce.com, inc.
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| Amount: | $1,695,000
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| Maturity: | July 26, 2021
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| Coupon: | 18.4%, payable quarterly if each stock closes at or above 70% coupon barrier level on determination date for that quarter
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| Price: | Par
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| Call: | At par if each stock closes at or above the initial price on any quarterly observation date beginning Jan. 22, 2020
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| Payout at maturity: | If each stock finishes at or above 70% trigger level, par; otherwise, a number of shares equal to the principal amount divided by the initial price of the worst performing stock
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| Initial levels: | $55.94 for CVS, $202.59 for Apple and $156.75 for salesforce.com
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| Barrier/trigger levels: | $39.158 for CVS, $141.813 for Apple and $109.725 for salesforce.com; 70% of initial prices
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| Pricing date: | July 19
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| Settlement date: | July 21
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40436B436
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