Published on 4/27/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.68 million autocallable barrier notes with step-up premium on indexes
By Sarah Lizee
Olympia, Wash., April 27 – HSBC USA Inc. priced $1.68 million of 0% autocallable barrier notes with step-up premium due April 23, 2026 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 the any annual observation date. The premium is 17% per year.
The payout will be par unless any index has finished below its 75% 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.
|
| Issue: | Autocallable barrier notes with step-up premium
|
| Underlying indexes: | Dow Jones industrial average, S&P 500 index and Russell 2000 index
|
| Amount: | $1,682,000
|
| Maturity: | April 23, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| 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
|
| Call: | At par plus a call premium if each index closes at or above its initial level on any annual observation date; premium is 17% per year
|
| Initial index levels: | 23,650.44 for Dow, 1,213.348 for Russell, 2,823.16 for S&P
|
| Barrier levels: | 17,737.83 for Dow, 910.011 for Russell, 2,117.37 for S&P; 75% of initial levels
|
| Pricing date: | April 20
|
| Settlement date: | April 23
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40438CEZ0
|
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