Published on 3/5/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $787,000 digital plus barrier notes on index, ETF
By Wendy Van Sickle
Columbus, Ohio, March 5 – HSBC USA Inc. priced $787,000 of 0% digital plus barrier notes due Feb. 3, 2026 linked to the least performing of the S&P MidCap 400 index and iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
If each asset finishes at or above 85% of its initial level, the payout at maturity will be par plus the greater of the fixed return of 30% and the return of the worst performing asset.
If either asset falls by more than 10% but no finishes below the 60% knock-in level, the payout will be par.
Otherwise, investors will lose 1% for each 1% decline of the worst performing asset.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Digital plus barrier notes
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Underlying assets: | S&P MidCap 400 index and iShares MSCI Emerging Markets ETF
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Amount: | $787,000
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Maturity: | Feb. 3, 2026
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If each asset finishes at or above 85% of its initial level, par plus greater of 30% and return of worst performing asset; if either asset falls by more than 10% but no falls by more than 30%, par; otherwise, 1% loss for each 1% decline of worst performing asset
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Initial levels: | $57.16 for ETF, 2,496.65 for S&P MidCap
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Knock-in levels: | 60% of initial levels
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Pricing date: | Feb. 18
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Settlement date: | Feb. 23
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40438CY54
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