Published on 12/22/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.33 million autocallable barrier notes with step-up premium on indexes
By Cady Vishniac
Detroit, Dec. 22 – HSBC USA Inc. priced $1.33 million of 0% autocallable barrier notes with step-up premium due Dec. 22, 2025 linked to the least performing of 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 an annualized call premium of 8.9% if each index closes at or above its initial level on any annual observation date.
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 80% barrier level. If any index finishes below its 80% barrier level, 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: | Nasdaq-100 index and Russell 2000 index
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Amount: | $1,331,000
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Maturity: | Dec. 22, 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 annualized 8.9% call premium if each index closes at or above initial level on any annual observation date
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Initial index levels: | 12,752.06 for Nasdaq, 1,978.045 for Russell
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Barrier levels: | 10,201.648 for Nasdaq, 1,582.436 for Russell, 80% of initial levels
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Pricing date: | Dec. 17
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Settlement date: | Dec. 22
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40438CG96
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