Published on 7/11/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.14 million autocallable barrier notes with step-up premium on indexes
By Kiku Steinfeld
Chicago, July 12 – HSBC USA Inc. priced $1.14 million of 0% autocallable barrier notes with step-up premium due May 28, 2026 linked to the lesser 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.
The notes will be called at par plus a call premium if each index closes at or above its initial level on any yearly observation date. The premium is 6.8% per year.
If the notes are not called, meaning all indexes have finished below their initial levels, the payout will be par unless any index has finished below its 70% 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, Dow Jones industrial average and Russell 2000
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| Amount: | $1,143,000
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| Maturity: | May 28, 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: | At par plus a call premium if each index closes at or above its initial level on any yearly observation date; premium is 6.8% per year
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| Initial index levels: | 34,312.46 for Dow, 2,205.75 for Russell, 4,188.13 for S&P
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| Barrier levels: | 24,018.722 for Dow, 1,544.025 for Russell, 2,931.69 for S&P; 70% of initial levels
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| Pricing date: | May 25
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| Settlement date: | May 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.625%
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| Cusip: | 40439JAU9
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