Published on 10/29/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $15.66 million step down trigger autocallables tied to Russell, Nasdaq
By Marisa Wong
Los Angeles, Oct. 29 – HSBC USA Inc. priced $15.66 million of 0% step down trigger autocallable notes due Oct. 31, 2025 linked to the lesser performing of the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
After one year, the notes will be automatically called at par of $10 plus 9.25% per year if each index closes at or above its call threshold level on any quarterly observation date. For each index, the call threshold level will be equal to the initial index level for the first 16 observation dates and equal to 75% of the initial level for the final observation date, Oct. 28, 2025.
If the notes are not subject to an automatic call, then the final level of at least one index will be less than its downside threshold, 75% of its initial level, and investors will be exposed to the decline of the lesser-performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Step down trigger autocallable notes
|
| Underlying indexes: | Russell 2000 and Nasdaq-100 index
|
| Amount: | $15,655,450
|
| Maturity: | Oct. 31, 2025
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Full exposure to decline of lesser-performing index from initial level
|
| Call: | Beginning Nov. 1, 2021 automatically at par plus 9.25% per year if each index closes at or above call threshold level on any quarterly observation date; call threshold level equals initial index level for first 16 observation dates and 75% of initial level for final observation date, Oct. 28, 2025
|
| Initial levels: | 1,543.275 for Russell 2000 and 11,142.76 for Nasdaq
|
| Downside thresholds: | 1,157.456 for Russell and 8,357.07 for Nasdaq, or 75% of initial levels
|
| Pricing date: | Oct. 28
|
| Settlement date: | Oct. 30
|
| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40438Q720
|
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