Published on 12/31/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $11.4 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 31 – HSBC USA Inc. priced $11.4 million of 0% autocallable barrier notes with step-up premium due Dec. 23, 2025 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized call premium of 10% if each index closes at or above its initial level on any semiannual observation date starting after one year.
If the notes are not called, meaning the final level of at least one of the indexes is less than 85% of its initial level but the worst performer finishes above 75% of its initial level, the payout will be par. If any index has finished below its 75% barrier level, 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, Russell 2000 index and Dow Jones industrial average
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| Amount: | $11.4 million
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| Maturity: | Dec. 23, 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 finished below 85% of initial level and worst performer finishes above barrier level, par; otherwise, investors will lose 1% for each 1% decline of least-performing index from its initial level
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| Call: | At par plus annualized 10% annual call premium if each index closes at or above initial level on any semiannual observation date
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| Initial index levels: | 3,709.41 for S&P, 1,989.8986 for Russell, 30,179.05 for Dow
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| Barrier levels: | 75% of initial levels
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| Pricing date: | Dec. 18
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| Settlement date: | Dec. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40438CL41
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