Published on 8/10/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.23 million autocallable barrier notes with step-up premium on indexes
By Taylor Fox
New York, Aug. 10 – HSBC USA Inc. priced $3.23 million of 0% autocallable barrier notes with step-up premium due Feb. 9, 2026 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 any annual observation date. The call premium is 14.6% per year.
If the notes are not called, the payout at maturity will be par plus any gain in the least performing index. Investors will receive par if the worst performer closes below its initial level but above 65% of its initial level. Otherwise, investors will lose 1% for each 1% decline of the lesser-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: | Nasdaq-100, Russell 2000, S&P 500
|
| Amount: | $3,228,000
|
| Maturity: | Feb. 9, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus return of worst performer if all indexes close above initial levels; par if worst performer declines but finishes above barrier level; otherwise, investors will lose 1% for each 1% decline of lesser-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 annual observation date; call premium is 14.6% per year
|
| Initial index levels: | 13,402.37 for Nasdaq, 2,159.703 for Russell, 3,830.17 for S&P
|
| Barrier levels: | 8,711.5405 for Nasdaq, 1,403.80695 for Russell, 2,489.6105 for S&P; 65% of initial levels
|
| Pricing date: | Feb. 3
|
| Settlement date: | Feb. 8
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40438CW49
|
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