Published on 9/28/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.54 million autocallable yield notes tied to S&P, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, Sept. 28 – HSBC USA Inc. priced $6.54 million of autocallable yield notes due March 28, 2022 linked to the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate will be 7% per year, and interest will be payable semiannually.
The notes will be called at par if each index closes at or above its initial level on any semiannual call observation date.
The payout at maturity will be par unless either index finishes below its buffer level, 80% of its initial level, in which case investors will lose 1.25% for every 1% that the least-performing index finishes below 80% of its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable yield notes
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Underlying indexes: | S&P 500 and Nasdaq-100
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Amount: | $6,535,000
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Maturity: | March 28, 2022
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Coupon: | 7%, payable semiannually
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Price: | Par
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Payout at maturity: | Par unless either index finishes below buffer level, in which case 1.25% loss for each 1% decline of worse performing index beyond 20%
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Call: | At par if each index closes at or above the initial level on any semiannual observation date
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Initial levels: | 3,315.57 for S&P 500, 11,186.37 for Nasdaq
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Buffer levels: | 80% of initial levels
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Pricing date: | Sept. 22
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Settlement date: | Sept. 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40438CXF3
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