Published on 9/28/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $67.94 million Accelerated Return Notes on S&P 500
By Marisa Wong
Los Angeles, Sept. 28 – HSBC USA Inc. priced $67,943,609.15 of 0% Accelerated Return Notes due Nov. 26, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
HSBC will issue a total of 6,796,361 notes with a principal amount of $10 each. The public offering price is par, but HSBC sold 400,017 units to an individual investor at $9.95 per unit.
The payout at maturity will be par plus triple any index gain, up to a maximum return of 17.37%. Investors will be exposed to any index decline.
BofA Securities, Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Accelerated Return Notes
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Underlying index: | S&P 500
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Total face amount: | $67,963,610
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Total offering price: | $67,943,609.15
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Maturity: | Nov. 26, 2021
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Coupon: | 0%
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Price: | Par of $10 to the public; $9.95 per unit for 400,017 units sold to individual investor
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Payout at maturity: | Par plus 300% of any index gain, capped at pat plus 17.37%; exposure to any index decline
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Initial index level: | 3,246.59
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Final index level: | Average of index’s closing levels on five trading days ending Nov. 22, 2021
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Pricing date: | Sept. 24
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Settlement date: | Oct. 1
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Underwriter: | BofA Securities, Inc.
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Fees: | 1.75% (1.25% for the units sold to the individual investor)
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Cusip: | 40438G847
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