Published on 12/14/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.68 million autocallable barrier notes with step-up premium on index, ETF
By Wendy Van Sickle
Columbus, Ohio, Dec. 14 – HSBC USA Inc. priced $1.68 million of 0% autocallable barrier notes with step-up premium due Dec. 3, 2026 linked to the least performing of the S&P 500 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each asset closes at or above its call level on any annual observation date. The premium is 8.35% per year. The call level is 100% of the initial level on the first call date and steps down by 3% a year.
If the notes are not called, meaning the final level of at least one of the assets is less than 85% of its initial level, the payout will be par unless any asset has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing asset 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 assets: | S&P 500 index and the iShares MSCI Emerging Markets ETF
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| mount: | $1,676,000
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| Maturity: | Dec. 3, 2026
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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 asset has finished below 85% of initial level, par unless any asset has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing asset from its initial level
|
| Call: | At par plus an 8.35% annualized call premium if each asset closes at or above call level on any annual observation date; call level starts at 100% of initial level and steps down by 3% a year
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| Initial asset levels: | 3,621.63 for S&P, $48.73 for ETF
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| Barrier levels: | 70% of initial levels
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 3
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40438CE56
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