Published on 4/22/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $797,000 autocallable barrier notes with step-up premium on three indexes
By Kiku Steinfeld
Chicago, April 22– HSBC USA Inc. priced $797,000 of 0% autocallable barrier notes with step-up premium Sept. 30, 2024 linked to the lesser performing of the Dow Jones industrial average, 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 call premium if each index closes at or above its initial level on any semiannual observation date after one year. The premium is 6.75% per year.
If the notes are not called, the payout will be par unless any index has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index 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 indexes: | Dow Jones industrial average, S&P 500 index, Russell 2000 index
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Amount: | $797,000
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Maturity: | Sept. 30, 2024
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless either index has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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Call: | At par plus a call premium if each index closes at or above its initial level on any semiannual observation date after one year; premium is 6.75% per year
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Initial index levels: | 4,443.11 for S&P, 34,869.37 for Dow, 2,281.003 for Russell
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Barrier levels: | 3,110.177 for S&P, 24,408.559 for Dow, 1,596.7021 for Russell; 70% of initial levels
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Pricing date: | Sept. 27, 2021
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Settlement date: | Sept. 30, 2021
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.025%
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Cusip: | 40439JLT0
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