Published on 8/21/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.08 million autocallable buffered notes with step-up premium on Nasdaq, Russell
By Sarah Lizee
Olympia, Wash., Aug. 21 – HSBC USA Inc. priced $1.08 million of 0% autocallable buffered notes with step-up premium due Aug. 21, 2023 linked to the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a 7.85% annualized premium if the indexes close at or above the call threshold on any semiannual call observation date. The call threshold will be 100% of each index’s initial level.
If the notes are not called, the payout will be par unless either index falls below 85% of its initial level, in which case investors will lose 1% for every 1% decline of the lesser performing index beyond 15%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable buffered notes with step-up premium
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Underlying index: | Nasdaq-100 index and Russell 2000 index
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Amount: | $1,075,000
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Maturity: | Aug. 21, 2023
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Coupon: | 0%
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Price: | Par
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Call: | At par plus a 7.85% annualized premium if each index closes at or above the call threshold on any semiannual call observation date; call threshold will be 100% of the initial level
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Payout at maturity: | If the notes are not called, par unless either index falls below 85% of its initial level, in which case investors will lose 1% for every 1% decline of the lesser performing index beyond 15%
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Initial levels: | 11,399.03 for Nasdaq, 1,569.773 for Russell
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Buffer levels: | 85% of initial levels
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Pricing date: | Aug. 18
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Settlement date: | Aug. 21
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 2.7%
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Cusip: | 40438CTR2
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