New Issue: HSBC sells $375,000 autocallable barrier notes with step-up premium on two ETFs

By Kiku Steinfeld

Chicago, June 14 – HSBC USA Inc. priced $375,000 of 0% autocallable barrier notes with step-up premium due Nov. 24, 2025 linked to the lesser performing of the Consumer Discretionary Select Sector SPDR fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus a call premium if each ETF closes at or above its initial level on any annual observation date. The premium is 9.5% per year.

If the notes are not called, the payout will be par unless either ETF finishes below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing fund from its initial level.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable barrier notes with step-up premium
Underlying funds:	Consumer Discretionary Select Sector SPDR fund, Financial Select Sector SPDR fund
Amount:	$375,000
Maturity:	Nov. 24, 2025
Coupon:	0%
Price:	Par
Payout at maturity:	Par unless either ETF finishes below barrier level, in which case investors will lose 1% for each 1% decline of least-performing fund from its initial level
Call:	At par plus a call premium if each ETF closes at or above its initial level on any annual observation date; premium is 9.5% per year
Initial asset levels:	$211.42 for Consumer, $39.02 for Financial
Barrier levels:	$147.994 for Consumer, $27.314 for Financial; 70% of initial levels
Pricing date:	Nov. 19, 2021
Settlement date:	Nov. 24, 2021
Agent:	HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	40439JRR8

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.