Published on 1/5/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 5 – HSBC USA Inc. priced $1 million of 0% autocallable barrier notes with step-up premium due Dec. 23, 2025 linked to the least performing of the Dow Jones industrial average, the S&P 500 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 10.4% if each index closes at or above its initial level on any quarterly observation date after one year.
If the notes are not called, but the worst performer finishes above 70% of its initial level, the payout will be par. If any index has finished below its 70% 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: | S&P 500 index, Russell 2000 index, Dow Jones industrial average
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Amount: | $1 million
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Maturity: | Dec. 23, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If not called and worst performer finishes above barrier level, par; otherwise, 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 10.4% call premium if each index closes at or above initial level on any quarterly observation date after one year
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Initial index levels: | 30,179.05 for Dow, 3,709.41 for S&P, 1,969.986 for Russell
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Barrier levels: | 21,125.335 for Dow, 2,596.587 for S&P, 1,378.9902 for Russell, 70% of initial levels
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Pricing date: | Dec. 18
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Settlement date: | Dec. 23
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.3%
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Cusip: | 40438CL58
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