Published on 3/16/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.14 million barrier autocalls with step-up premium on Global Clean Energy
By Kiku Steinfeld
Chicago, March 16 – HSBC USA Inc. priced $1.14 million of 0% autocallable barrier notes with step-up premium due March 4, 2024 linked to the iShares Global Clean Energy ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if the fund closes at or above its initial level on any semiannual call observation date. The call premium is 20.5% per year.
If the notes are not called and the fund finishes at or above its 60% barrier level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the fund.
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 fund: | iShares Global Clean Energy ETF
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Amount: | $1,141,000
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Maturity: | March 4, 2024
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If not called and fund finishes at or above its 60% barrier level, par; otherwise, full exposure to losses
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Call: | At par plus a call premium of 20.5% per year if fund closes at or above its initial level on any semiannual call date
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Initial fund level: | $25.85
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Barrier level: | $15.51, 60% of initial level
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Pricing date: | Feb. 26
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Settlement date: | March 3
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40438CX30
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