Published on 6/10/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.4 million autocallable barrier notes with step-up premium on index, ETF
By Wendy Van Sickle
Columbus, Ohio, June 10 – HSBC USA Inc. priced $1.4 million of 0% autocallable barrier notes with step-up premium due May 19, 2025 linked to the lesser performing of the Euro Stoxx Banks index and the SPDR S&P Biotech ETF , 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 annual observation date The premium is 16.7% 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: | Euro Stoxx Banks index and SPDR S&P Biotech ETF
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Amount: | $1,401,000
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Maturity: | May 19, 2025
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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 annual observation date; premium is 16.7% per year
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Initial asset levels: | 97.46 for index , $126.92 for ETF
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Barrier levels: | 68.222 for index, $88.844 for ETF, 70% of initial levels
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Pricing date: | May 28
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Settlement date: | June 3
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40439JAS4
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