Published on 11/19/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $263,000 autocallable barrier notes with step-up premium on indexes
By Taylor Fox
New York, Nov. 19 – HSBC USA Inc. priced $263,000 of 0% autocallable barrier notes with step-up premium due Nov. 4, 2025 linked to the least performing of the S&P 500 index, the Nasdaq-100 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 10.7% per year.
If the notes are not called, meaning the final levels of at least one of the indexes has declined below its initial level, the payout will be par unless any index has finished below its 60% 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
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| Underlying indexes: | S&P 500 index, Nasdaq-100 index and Russell 2000 index
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| Amount: | $263,000
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| Maturity: | Nov. 4, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called because at least one index has closed below initial level, par unless any 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 of its initial level on any annual observation date; premium is 10.7% per year
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| Initial index levels: | 3,269.96 for S&P, 1,538.479 for Russell, 11,052.95 for Nasdaq
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| Barrier levels: | 60% of initial levels
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| Pricing date: | Oct. 30
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| Settlement date: | Nov. 4
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.625%
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| Cusip: | 40438CYB1
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