Published on 12/28/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $19.95 million autocallable market-linked step-up notes on Stoxx 50
By Marisa Wong
Los Angeles, Dec. 29 – HSBC USA Inc. priced $19.95 million of 0% autocallable market-linked step-up notes due Dec. 31, 2026 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
HSBC will issue 1,999,362 units, each with a principal amount of $10, or a total principal amount of $19,993,620. HSBC is selling 940,000 units to individual investors at $9.95 per unit and the remainder to the public at par of $10, for total proceeds of $19,946,620.
The notes will be called at par of $10 plus a premium of 7.5% per year if the index closes at or above its initial level on any annual observation date.
If the index finishes above the step-up value, 125% of the initial value, the payout at maturity will be par plus the index return.
If the index finishes at or below the step-up value but at or above the initial value, the payout will be par plus the step-up payment of 25%.
If the index falls by up to 15%, the payout will be par. Otherwise, investors will lose 1% for every 1% index decline beyond 15%.
BofA Securities, Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | Euro Stoxx 50 index
|
| Principal amount: | $19,993,620 (1,999,362 units)
|
| Proceeds: | $19,946,620
|
| Maturity: | Dec. 31, 2026
|
| Coupon: | 0%
|
| Price: | $9.95 for 940,000 units; par of $10 for remainder
|
| Payout at maturity: | If the index finishes above the step-up value, par plus the index return; if the index finishes at or below the step-up value but at or above the initial value, par plus 25%; if the index falls by up to 15%, par; otherwise, 1% loss for every 1% index decline beyond 15%
|
| Call: | Automatically at par plus a premium of 7.5% per year if the index closes at or above its initial level on any annual observation date
|
| Initial value: | 4,217.06
|
| Step-up value: | 5,271.33, 125% of initial value
|
| Threshold value: | 3,584.50, 85% of initial value
|
| Pricing date: | Dec. 22
|
| Settlement date: | Jan. 3
|
| Underwriter: | BofA Securities, Inc.
|
| Fees: | 1.5% for 940,000 units sold to individual investors; 2% to rest sold to public
|
| Cusip: | 40439N502
|
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