Published on 6/18/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.51 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, June 18 – HSBC USA Inc. priced $5.51 million of 0% autocallable barrier notes with step-up premium due May 20, 2026 linked to the lesser performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, 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 one year. The premium is 10% 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 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $5,506,000
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Maturity: | May 20, 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 one year; premium is 10% per year
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Initial index levels: | 34,466.24 for Dow, 2,327.128 for Russell, 4,155.86 for S&P
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Barrier levels: | 25,655.88 for Dow, 1,661.451 for Russell, 3,116.895 for S&P; 75% of initial levels
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Pricing date: | June 9
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Settlement date: | June 14
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40439JAJ4
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