Published on 10/29/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.41 million autocallable barrier notes with step-up call on indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 29 – HSBC USA Inc. priced $3.41 million of 0% autocallable barrier notes with step-up call amount due Oct. 29, 2024 linked to the least performing of the Nasdaq-100 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically redeemed at par plus an annualized call premium of 9.5% if each index closes above its initial level on any semiannual observation date after one year.
If the notes are not called, the payout at maturity will be par unless the final level of any index is less than 70% of the initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up call amount
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| Underlying indexes: | Nasdaq-100 index, Dow Jones industrial average and Russell 2000 index
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| Amount: | $3,412,000
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| Maturity: | Oct. 29, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called, par unless the final level of any index is less than trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing index
|
| Call: | At par plus 9.5% annualized premium if all indexes finish above their initial levels on any semiannual observation date after one year
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| Initial levels: | 2,296.075 for Russell, 15,559.49 for Nasdaq, 35,756.88 for Dow
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| Trigger levels: | 1,607.2525 for Russell, 10,891.643 for Nasdaq, 25,029.816 | for Dow; 70% of initial levels
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| Pricing date: | Oct. 26
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| Settlement date: | Oct. 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40439JPM1
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