Published on 5/21/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $33,000 autocallable barrier notes with step-up premium on ETFs
By Wendy Van Sickle
Columbus, Ohio, May 21 – HSBC USA Inc. priced $33,000 of 0% autocallable barrier notes with step-up premium due May 6, 2024 linked to the lesser performing of the Industrial Select Sector SPDR fund, the Financial Select Sector SPDR fund and the Materials Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each asset closes at or above its initial level on any semiannual observation date. The premium is 11.5% per year.
If the notes are not called, the payout will be par unless any asset has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing asset from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying assets: | Industrial Select Sector SPDR fund, Financial Select Sector SPDR fund and Materials Select Sector SPDR fund
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| Amount: | $33,000
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| Maturity: | May 6, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless either asset has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing asset from its initial level
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| Call: | At par plus a call premium if each asset closes at or above its initial level on any semiannual observation date; premium is 11.5% per year
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| Initial asset levels: | $101.93 for Industrial, $83.04 for Materials, $36.26 for Financial
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| Barrier levels: | $71.351 for Industrial, $58.128 for Materials, $25.128 for Financial 70% of initial levels
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| Pricing date: | April 30
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| Settlement date: | May 5
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40438C4X6
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