Published on 2/25/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $171,000 autocallable barrier notes with step-up premium on index, ETF
By Wendy Van Sickle
Columbus, Ohio, Feb. 25 – HSBC USA Inc. priced $171,000 of 0% autocallable barrier notes with step-up premium due Feb. 28, 2024 linked to the lesser performing of the Russell 2000 index and the Health Care 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 95% of its initial level on any annual observation date after one year. The call premium is 9.85% 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 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: | Russell 2000 index, Health Care Select Sector SPDR fund
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Amount: | $171,000
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Maturity: | Feb. 28, 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 95% of its initial level on any annual observation date after one year; call premium is 9.85% per year
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Initial levels: | 1,678.609 for index and $103.43 for ETF
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Call threshold: | 95% of initial levels
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Barrier levels: | 1,175.0263 for index and $72.401 for ETF; 70% of initial levels
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Pricing date: | Feb. 21
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Settlement date: | Feb. 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40435U4A9
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