Published on 5/4/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $90,000 dual directional barrier notes tied to Russell, S&P
By Sarah Lizee
Olympia, Wash., May 4 – HSBC USA Inc. priced $90,000 of 0% dual directional barrier securities due April 30, 2024 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final level of each index is greater than its initial level, the payout at maturity will be par plus the lesser-performing index’s return, capped at par plus 50%.
If the final level of either index is less than or equal to its initial level but neither underlying finishes below its trigger value, 70% of its initial level, the payout will be par plus the absolute value of the lesser-performing underlying’s return.
If either index finishes below its trigger value, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Dual directional barrier securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $90,000
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| Maturity: | April 30, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above initial level, par plus the lesser-performing index’s return, capped at par plus 50%; if lesser-performing index falls by up to 30%, par plus absolute value of its return; otherwise, 1% loss for every 1% that lesser-performing index’s final level is less than initial level
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| Initial levels: | 2,878.48 for S&P 500, 1,281.878 for Russell 2000
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| Trigger levels: | 70% of initial levels
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| Pricing date: | April 27
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| Settlement date: | April 30
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40438CEQ0
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