Published on 12/19/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.93 million autocallable barrier notes with step-up premium on indexes
By Taylor Fox
New York, Dec. 21 – HSBC USA Inc. priced $1.93 million of 0% autocallable barrier notes with step-up premium due Dec. 18, 2025 linked to the least performing of 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 any annual observation date after one year. The premium is 6.18% per year.
If the notes are not called, meaning the final level of at least one of the indexes is less than 100% of its initial level, the payout will be par unless any index has finished below its 65% 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: | S&P 500 index, Russell 2000 index
|
| Amount: | $1,934,000
|
| Maturity: | Dec. 18, 2025
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If not called because at least one index has finished below 100% of 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
|
| Call: | At par plus a call premium if each index closes at or above initial level on any annual observation date; premium is 6.18% per year
|
| Initial index levels: | 3,694.62 for S&P, 1,959.763 for Russell
|
| Barrier levels: | 65% of initial levels
|
| Pricing date: | Dec. 15
|
| Settlement date: | Dec. 18
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40438CJ93
|
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