Published on 11/11/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $500,000 dual directional digital plus notes on Dow, Russell, S&P
By Taylor Fox
New York, Nov. 11 – HSBC USA Inc. priced $500,000 of 0% dual directional digital plus securities due Oct. 21, 2025 linked to the least performing of the S&P 500 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the least-performing index’s final level is greater than or equal to its initial level, the payout at maturity will be par plus the greater of the least-performing index’s return and 17%.
If the least-performing index’s final level is less than its initial level but greater than or equal to its barrier level, 70% of its initial level, the payout will be par plus the absolute value of the least-performing index’s return.
If the least-performing index’s final level is less than its barrier level, investors will lose 1% for every 1% that the least-performing index declines.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Dual directional digital plus securities
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| Underlying indexes: | S&P 500, Dow Jones industrial average and Russell
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| Amount: | $500,000
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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 least-performing index’s final level is greater than or equal to initial level, par plus greater of least-performing index’s return and 17%; if least-performing index’s final level is less than initial level but greater than or equal to barrier level, par plus absolute value of least-performing index’s return; if least-performing index’s final level is less than barrier level, 1% loss for every 1% that least-performing index declines
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| Initial levels: | 3,483.81 for S&P, 28,606.31 for Dow, 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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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.625%
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| Cusip: | 40438CYU9
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