Published on 9/22/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.08 million autocallable barrier notes with step-up premium on indexes
By Kiku Steinfeld
Chicago, Sept. 22 – HSBC USA Inc. priced $2.08 million of 0% autocallable barrier notes with step-up premium due Sept. 15, 2025 linked to the least performing of the Dow Jones industrial average, 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 call premium if each index closes at or above its initial level on the any annual observation date. The premium is 16.4% per year.
The payout will be par unless any index has finished below its 75% 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, Nasdaq-100 index and Russell 2000 index
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Amount: | $2,081,000
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Maturity: | Sept. 15, 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: | At par plus a call premium if each index closes at or of its initial level on any annual observation date; premium is 16.4% per year
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Initial index levels: | 1,507.751 for Russell, 11,154.12 for Nasdaq, 27,534.58 for Dow
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Barrier levels: | 75% of initial levels
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Pricing date: | Sept. 10
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Settlement date: | Sept. 15
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Agent: | HSBC Securities (USA) Inc.
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Cusip: | 40438CWB3
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