Published on 4/17/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.49 million autocallable step-up notes linked to Russell 1000 Value
By Kiku Steinfeld
Chicago, April 19 – HSBC USA Inc. priced $5.49 million of 0% autocallable market-linked step-up notes due March 27, 2026 linked to the Russell 1000 Value index, according to a 424B2 with the Securities and Exchange Commission.
The notes will be called at par plus an annual call premium of 4.65% if the index closes at or above its initial level on any annual call date.
If the index finishes above the step-up value – 130% of the initial level – the payout at maturity will be par of $10 plus the index gain.
If the index is flat or gains by up to the step-up level, the payout will be par plus the step-up payment of 30%.
If the index declines but not more than 15%, the payout will be par. Otherwise, investors will lose 1% for every 1% that the index declines beyond 15%.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | Russell 1000 Value
|
| Amount: | $5,490,000
|
| Maturity: | March 27, 2026
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the index finishes above the step-up level, par plus the index gain; if the index finishes flat or gains up to the step-up level, par plus 30%; par if the index declines but not below threshold level; otherwise, investors will lose 1% for every 1% that index declines beyond 15%
|
| Call: | At par plus 4.65% per year if the index closes at or above its initial level on April 1, 2022, March 24, 2023, March 22, 2024 or March 21, 2025
|
| Initial level: | 1,479.560
|
| Step-up value: | 1,923.428; 130% of initial level
|
| Threshold level: | 1,257.626; 85% of initial level
|
| Pricing date: | March 25
|
| Settlement date: | April 1
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40438U564
|
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