Published on 10/27/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.01 million barrier enhanced participation notes on Dow, S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Oct. 27 – HSBC USA Inc. priced $1.01 million of 0% barrier enhanced participation notes due Oct. 21, 2025 linked to the least performing of the Russell 2000 index, the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the return of each index is positive, the payout at maturity will be par plus 142% of the least-performing index’s return.
If the return of the least-performing index is less than or equal to zero but greater than or equal to negative 30%, the payout will be par. If the return of either index is less than negative 30%, investors will lose 1% for every 1% that the least-performing index declines from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Barrier enhanced participation notes
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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| Amount: | $1,013,000
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| Maturity: | Oct. 21, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If return of each index is positive, par plus 142% of least-performing index’s return; if return of least-performing index is less than or equal to zero but greater than or equal to negative 30%, par; if return of either index is less than negative 30%, 1% loss for every 1% that least-performing index declines from initial level
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| Initial levels: | 28,606.31 for Dow, 3,483.81 for S&P and 1,633.808 for Russell
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| Barrier levels: | 70% of initial levels
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| Pricing date: | Oct. 16
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| Settlement date: | Oct. 21
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| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 3.625%
|
| Cusip: | 40438CYT2
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