Published on 2/24/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.89 million autocallable barrier notes with step-up premium on three indexes
By William Gullotti
Buffalo, N.Y., Feb. 24 – HSBC USA Inc. priced $6.89 million of 0% autocallable barrier notes with step-up premium due April 28, 2025 linked to the lesser 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 a call premium if each index closes at or above its initial level on any semiannual observation date after a year. The premium is 9.25% per year.
If the notes are not called, the payout will be par unless any 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: | S&P 500 index, Russell 2000 index, Dow Jones industrial average
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| Amount: | $6,889,000
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| Maturity: | April 28, 2025
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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 semiannual observation date after a year; premium is 9.25% per year
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| Initial index levels: | 4,180.17 for S&P, 2,271.856 for Russell, 34,043.49 for Dow
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| Barrier levels: | 3,135.1275 for S&P, 1,703.892 for Russell, 25,532.6175 for Dow; 75% of initial levels
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| Pricing date: | April 23, 2021
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| Settlement date: | April 28, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40438C5S6
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