Published on 6/21/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.22 million autocallable buffered notes with step-up premium on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, June 21 – HSBC USA Inc. priced $4.22 million of 0% autocallable buffered notes with step-up premium and upside participation due May 26, 2026 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an 9.4% annualized premium if the indexes close at or above the call threshold on any semiannual call observation date starting May 26, 2022. The call threshold will be 100% of each index’s initial level.
The payout will be par plus any gain of the lesser-performing index. The payout will be par if either index falls but not below 90% of its initial level, in which case investors will lose 1% for every 1% decline of the lesser performing index beyond 10%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable buffered notes with step-up premium and upside participation
|
| Underlying index: | S&P 500 index and Russell 2000 index
|
| Amount: | $4,215,000
|
| Maturity: | May 26, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | At par plus an 9.4% annualized premium if each index closes at or above the call threshold on any semiannual call observation date starting May 26, 2022; call threshold will be 100% of the initial level
|
| Payout at maturity: | Par plus any gain of least performing index; par if either index falls but not below buffer; otherwise, 1% loss for every 1% decline of the lesser performing index beyond 10%
|
| Initial levels: | 2,215.268 for Russell, 4,155.86 for S&P
|
| Buffer levels: | 1,993.7412 for Russell, 3,740.274 for S&P, 90% of initial levels
|
| Pricing date: | May 21
|
| Settlement date: | May 26
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40439JAV7
|
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