Published on 9/20/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $11.79 million autocallable barrier notes with step-up premium on index, ETF
By Wendy Van Sickle
Columbus, Ohio, Sept. 20 – HSBC USA Inc. priced $11.79 milion of 0% autocallable barrier notes with step-up premium due Sept. 15, 2026 linked to the lesser performing of the Russell 2000 index and the iShares MSCI Emerging Markets 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 quarterly observation date after six months. The premium is 10% per year.
If the notes are not called, the payout will be par unless any asset has finished below its 75% 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: | Russell 2000 index and iShares MSCI Emerging Markets ETF
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Amount: | $11,785,000
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Maturity: | Sept. 15, 2026
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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 quarterly observation date after six months; premium is 10% per year
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Initial asset levels: | 2,234.448 for index, $52.18 for ETF
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Barrier levels: | 1,675.836 for index, $39.135 for ETF, 75% of initial levels
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Pricing date: | Sept. 15
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Settlement date: | Sept. 20
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.85%
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Cusip: | 40439JMM4
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