Published on 3/17/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.06 million autocallable barrier notes with step-up premium on EM ETF, Russell
By Wendy Van Sickle
Columbus, Ohio, March 17 – HSBC USA Inc. priced $1.06 million of 0% autocallable barrier notes with step-up premium due Feb. 26, 2026 linked to the lesser performing of the iShares MSCI Emerging Markets ETF and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each asset closes at or above its initial level on any quarterly observation date after a year. The premium is 10.82% per year.
If the notes are not called, the payout will be par unless any asset has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing asset 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 assets: | iShares MSCI Emerging Markets ETF and Russell 2000 index
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| Amount: | $1.06 million
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| Maturity: | Feb. 26, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless either asset has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing asset from its initial level
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| Call: | At par plus a call premium if each asset closes at or above its initial level on any quarterly observation date after a year; premium is 10.82% per year
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| Initial asset levels: | $55.73 for iShares MSCI Emerging Markets, 2,231.314 for Russell
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| Barrier levels: | $39.011 for iShares MSCI Emerging Markets, 1,599.0667 for Russell; 70% of initial levels
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 26
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.35%
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| Cusip: | 40438CZ20
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