Published on 12/11/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 11 – HSBC USA Inc. priced $3 million of 0% autocallable barrier notes with step-up premium due Dec. 1, 2025 linked to the least performing of the S&P 500 index, the Nasdaq-100 index and the Dow Jones industrial average, 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 semiannual observation date. The premium is 11.65% per year.
If the notes are not called, meaning the final level of at least one of the indexes is less than its initial level, 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: | S&P 500 index, Nasdaq-100 index and Dow Jones industrial average
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Amount: | $3 million
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Maturity: | Dec. 1, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If not called because at least one index has finished below initial level, par unless any 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 above initial level on any semiannual observation date; premium is 11.65% per year
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Initial index levels: | 3,629.65 for S&P, 12,152.21 for Nasdaq, 29,872.47 for Dow
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Barrier levels: | 70% of initial levels
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Pricing date: | Nov. 25
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Settlement date: | Dec. 1
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.25%
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Cusip: | 40438CE49
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