Published on 12/22/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.7 million autocallable buffered notes with step-up premium on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Dec. 22 – HSBC USA Inc. priced $1.7 million of 0% autocallable buffered notes with step-up premium due Dec. 22, 2025 linked to the S&P 500 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 an 8.8% annualized premium if the indexes close at or above the call threshold on any quarterly call observation date starting March 17, 2022. The call threshold will be 100% of each index’s initial level.
If the notes are not called, the payout will be par unless either index falls below 90% of its initial level, in which case investors will lose 1% for every 1% decline of the lesser performing index beyond 10%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable buffered notes with step-up premium
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| Underlying index: | S&P 500 index and Russell 2000 index
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| Amount: | $1.7 million
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| Maturity: | Dec. 22, 2025
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus an 8.8% annualized premium if each index closes at or above the call threshold on any quarterly call observation date starting March 17, 2022; call threshold will be 100% of the initial level
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| Payout at maturity: | If the notes are not called, par unless either index falls below 90% of its initial level, in which case investors will lose 1% for every 1% decline of the lesser performing index beyond 10%
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| Initial levels: | 1,978.045 for Russell, 3,772.48 for S&P
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| Buffer levels: | 90% of initial levels
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| Pricing date: | Dec. 17
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| Settlement date: | Dec. 22
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40438CK83
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