Published on 4/5/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.1 million callable contingent income barrier notes on S&P, Biotech ETF
By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $2.1 million of callable contingent income barrier notes due March 25, 2024 linked to the least performing of the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, the notes will pay a contingent coupon at an annual rate of 13% if each asset closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par on any semiannual call observation date.
The payout at maturity will be par plus the final coupon unless any asset finishes below its 70% barrier level, in which case investors will be fully exposed to the decline of the lowest performing asset.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable contingent income barrier notes
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Underlying assets: | S&P 500 index and SPDR S&P Biotech ETF
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Amount: | $2.1 million
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Maturity: | March 25, 2024
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Coupon: | 13%, payable semiannually if each asset closes at or above trigger level on determination date for that period,
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Price: | Par
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Payout at maturity: | If each asset finishes at or above barrier level, par; otherwise, exposure to decline of worst-performing asset
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Call option: | At par on any semiannual call observation date
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Initial level: | 3,913.1 for S&P, $145.07 for ETF
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Trigger/barrier levels: | 2,739.17 for S&P, $101.549 for ETF, 70% 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: | 1.5%
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Cusip: | 40438C3B5
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