Published on 3/10/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $400,000 autocallable barrier notes with step-up premium on indexes
By Kiku Steinfeld
Chicago, March 10 – HSBC USA Inc. priced $400,000 of 0% autocallable barrier notes with step-up premium and step-down call threshold due Feb. 28, 2023 linked to the lesser performing of the Euro Stoxx 50 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 the first annual observation date, 95% of its initial level on the second or 90% of the initial level on the third annual date. The call premium is 9.35% per year.
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 and step-down call threshold
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| Underlying indexes: | Euro Stoxx 50, Russell 2000
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| Amount: | $400,000
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| Maturity: | Feb. 28, 2023
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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 the first annual observation date, 95% of its initial level on the second or 90% of the initial level on the third annual date; call premium is 9.35% per year
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| Initial index levels: | 3,572.51 for Stoxx, 1,571.897 for Russell
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| Barrier levels: | 2,500.757 for Stoxx, 1,100.3279 for Russell; 70% of initial levels
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| Pricing date: | Feb. 25
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| Settlement date: | Feb. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40435U6D1
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