Published on 3/15/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $10 million step-down trigger autocallables on Russell, S&P, Dow
By Wendy Van Sickle
Columbus, Ohio, March 15 – HSBC USA Inc. priced $10 million of 0% step-down trigger autocallable notes due March 10, 2025 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par of $10 plus 9.86% per year if each index closes at or above its call threshold level on any annual observation date. For each index, the call threshold level will be equal to the initial index level for the first three observation dates and 80% of the initial level for the final observation date.
If the notes are not called, the payout will be par unless any index finishes below its 60% downside threshold level, in which case investors will be exposed to the decline of the least-performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
Issuer: | HSBC USA Inc.
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Issue: | Step-down trigger autocallable notes
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Underlying indexes: | Russell 2000 index, S&P 500 index, Dow Jones industrial average
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Amount: | $10 million
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Maturity: | March 10, 2025
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par unless any index finishes below downside threshold level, in which case full exposure to decline of least-performing index from initial level
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Call: | Automatically at par plus 9.86% per year if each index closes at or above call threshold level on any annual observation date; call threshold equals initial index level for first three observation dates and stepdown threshold for final observation date
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Initial levels: | 31,496.3 for Dow, 2,192.212 for Russell, 3,841.94 for S&P
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Stepdown thresholds: | 25,197.04 for Dow, 1,753.77 for Russell, 3,073.55 for S&P; 80% of initial levels
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Downside thresholds: | 18,897.78 for Dow, 1,315.327 for Russell, 2,305.16 for S&P; 60% of initial levels
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Pricing date: | March 5
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Trade date: | March 9
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Settlement date: | March 12
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Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40438U663
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