Published on 7/16/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.2 million autocallable buffered notes with step-up premium on three indexes
By William Gullotti
Buffalo, N.Y., July 16 – HSBC USA Inc. priced $1.2 million of 0% autocallable buffered notes with step-up premium and upside participation due July 20, 2026 linked to the Nasdaq-100 index, 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 7.35% annualized premium if the indexes close at or above initial levels on any semiannual call observation date starting July 15, 2022.
The payout will be par plus any gain of the worst performing index. The payout will be par if any index falls up to 80% of its initial level. Otherwise, investors will lose 1% for every 1% decline of the worst performing index beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable buffered notes with step-up premium and upside participation
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| Underlying index: | Nasdaq-100 index, S&P 500 index, Russell 2000 index
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| Amount: | $1,200,000
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| Maturity: | July 20, 2026
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus an 7.35% annualized premium if each index closes at or above initial levels on any semiannual call observation date starting July 15, 2022
|
| Payout at maturity: | Par plus any gain of worst performing index; par if any index falls but not below buffer; otherwise, 1% loss for every 1% decline of the worst performing index beyond 20%
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| Initial levels: | 14,900.44 for Nasdaq, 2,202.358 for Russell, 4,374.3 for S&P
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| Buffer levels: | 11,920.352 for Nasdaq, 1,761.8864 for Russell, 3,499.44 for S&P; 80% of initial levels
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| Pricing date: | July 14
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| Settlement date: | July 19
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40439JGB5
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