Published on 4/5/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $7.61 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $7.61 million of 0% autocallable barrier notes with step-up premium due March 24, 2026 linked to the lesser performing of the S&P 500 index, the Dow Jones industrial average 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 index closes at or above its initial level on any semiannual observation date after a year. The premium is 13.3% per year.
If the notes are not called, meaning all indexes have finished below their initial levels, the payout will be par unless any index has finished below its 75% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index 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 indexes: | S&P 500, Dow Jones industrial average and Russell 2000
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Amount: | $7,609,000
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Maturity: | March 24, 2026
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless any index has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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Call: | At par plus a call premium if each index closes at or above its initial level on any semiannual observation date after a year; premium is 13.3% per year
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Initial index levels: | 32,627.97 for Dow, 2,287.545 for Russell, 3,913.1 for S&P
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Barrier levels: | 24,470.9775 for Dow, 1,715.65875 for Russell, 2,934.825 for S&P; 75% of initial levels
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Pricing date: | March 19
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Settlement date: | March 24
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40438C3E9
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