Published on 3/9/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $767,000 autocallable barrier notes with step-up premium on indexes
By Sarah Lizee
Olympia, Wash., March 9 – HSBC USA Inc. priced $767,000 of 0% autocallable barrier notes with step-up premium due March 3, 2025 linked to the lesser performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning Feb. 26, 2021, the notes will be called at par plus a call premium of 9.1% per year if each index closes at or above its initial level on any annual call date.
The payout will be par unless any index has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index 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 indexes: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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Amount: | $767,000
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Maturity: | March 3, 2025
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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 barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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Call: | Beginning Feb. 26, 2021, notes will be called at par plus a call premium of 9.1% per year if each index closes at or above its initial level on any annual call date
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Initial index levels: | 25,766.64 for Dow, 1,497.87 for Russell and 2,978.76 for S&P
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Barrier levels: | 18,036.648 for Dow, 1,048.509 for Russell and 2,085.132 for S&P, or 70% of initial levels
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Pricing date: | Feb. 27
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Settlement date: | March 3
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40435U6X7
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