Published on 3/4/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $7.75 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, March 4 – HSBC USA Inc. priced $7.75 million of 0% autocallable barrier notes with step-up premium due Feb. 24, 2026 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.
After one year, the notes will be called at par plus a call premium if each index closes at or above its initial level on any semiannual observation date. The call premium is 13% per year.
The payout will be par unless each index has finished below its 75% 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: | Dow Jones industrial average, Russell 2000 index, S&P 500 index
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| Amount: | $7,745,000
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| Maturity: | Feb. 24, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | 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: | After one year, at par plus a call premium if each index closes at or above its initial level on any semiannual observation date; call premium is 13% per year
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| Initial index levels: | 31,494.32 for Dow, 2,266.689 for Russell, 3,906.71 for S&P
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| Barrier levels: | 23,620.74 for Dow, 1,700.01675 for Russell, 2,930.0325 for S&P; 75% of initial levels
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| Pricing date: | Feb. 19
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| Settlement date: | Feb. 24
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40438CW64
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