Published on 12/19/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million autocallable barrier notes with step-up premium on indexes
By Taylor Fox
New York, Dec. 21 – HSBC USA Inc. priced $1 million of 0% autocallable barrier notes with step-up premium due Dec. 18, 2025 linked to the least performing of the S&P 500 index, the Russell 2000 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 any quarterly observation date after one year. The premium is 10.2% per year.
If the notes are not called, meaning the final level of at least one of the indexes is less than 100% of 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, Russell 2000 index and Dow Jones industrial average
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Amount: | $1 million
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Maturity: | Dec. 18, 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 100% of 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 quarterly observation date after one year; premium is 10.2% per year
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Initial index levels: | 3,694.62 for S&P, 1,959.763 for Russell, 30,199.331 for Dow
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Barrier levels: | 2,586.234 for S&P, 1,371.8341 for Russell, 21,139.517 for Dow; 70% of initial levels
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Pricing date: | Dec. 15
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Settlement date: | Dec. 18
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.6%
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Cusip: | 40438CL33
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