Published on 3/5/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.75 million autocallable buffer notes on S&P, Russell
By Sarah Lizee
Olympia, Wash., March 5 – HSBC USA Inc. priced $5.75 million of 0% autocallable buffer notes due Sept. 2, 2021 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning Aug. 28, the notes will be called at par plus a call premium if each index closes at or above its initial level on any semiannual call date. The premium is 9.5% per year.
The payout will be par unless any index has finished below its 80% buffer level, in which case investors will lose 1.25% for each 1% decline of the least-performing index beyond 20%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable buffer notes
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Underlying indexes: | S&P 500 index and Russell 2000 index
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Amount: | $5,745,000
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Maturity: | Sept. 2, 2021
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless either index has finished below buffer level, in which case investors will lose 1.25% for each 1% decline of least-performing index beyond buffer
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Call: | Beginning Aug. 28, at par plus a call premium of 9.5% per year if each index closes at or above its initial level on any semiannual call date
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Initial index levels: | 3,116.39 for S&P, 1,552.761 for Russell
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Buffer levels: | 2,493.112 for S&P, 1,242.2088 for Russell; 80% of initial levels
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Pricing date: | Feb. 26
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Settlement date: | March 2
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.05%
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Cusip: | 40435U6W9
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