Published on 2/19/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $525,000 contingent income barrier autocalls on Nasdaq, S&P
By Wendy Van Sickle
Columbus, Ohio, Feb. 19 – HSBC USA Inc. priced $525,000 of autocallable contingent income barrier notes due Feb. 13, 2023 linked to the least performing of the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission
If each index closes at or above its coupon barrier, 80% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon for that quarter at an annual rate of 8%.
The notes will be called at par if each index closes at or above its initial level on any coupon observation date after six months.
The payout at maturity will be par unless either index closes below the trigger, 80% of the initial level, in which case investors will be fully exposed to the losses of the worse-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index and Nasdaq-100 index
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| Amount: | $525,000
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| Maturity: | Feb. 13, 2023
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| Coupon: | 8% per year, payable quarterly if each index closes at or above coupon barrier on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worse-performing index
|
| Call: | At par if each index closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | 13,695.02 for Nasdaq and 3,915.59 for S&P
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| Coupon barriers: | 10,956.016 for Nasdaq and 3,132.472 for S&P, 80% of initial levels
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| Trigger levels: | 10,956.016 for Nasdaq and 3,132.472 for S&P, 80% of initial levels
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| Pricing date: | Feb. 8
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| Settlement date: | Feb. 11
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40438CW98
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