Published on 12/1/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.31 million autocallable buffer notes with step-up premium on S&P, Russell
By William Gullotti
Buffalo, N.Y., Dec. 1 – HSBC USA Inc. priced $3.31 million of 0% autocallable buffer notes with step-up premium due Dec. 1, 2026 linked to the lesser performing of 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 a 9.3% annualized call premium if each index closes at or above its initial level on any annual observation date.
If the notes are not called, the payout will be par unless any index has finished below its 80% buffer level, in which case investors will lose 1.25% for each 1% decline of the least-performing index below 20%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable buffer notes with step-up premium
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $3,312,000
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Maturity: | Dec. 1, 2026
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless any index finishes below buffer level, in which case investors will lose 1.25% for each 1% decline of least-performing index below 20%
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Call: | At par plus a 9.3% annualized call premium if each index closes at or above its initial level on any annual observation date
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Initial index levels: | 4,594.62 for S&P, 2,245.935 for Russell
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Buffer levels: | 80% of initial levels
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Pricing date: | Nov. 26
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Settlement date: | Dec. 1
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.25%
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Cusip: | 40439JSY2
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