Published on 12/14/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.58 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 14 – HSBC USA Inc. priced $6.58 million of 0% autocallable barrier notes with step-up premium due June 3, 2026 linked to the least 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 95% of its initial level on any semiannual observation date after one year. The premium is 10% per year.
If the notes are not called, meaning the final level of at least one of the indexes is less than 95% of its initial level, 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 and Dow Jones industrial average
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Amount: | $6,578,000
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Maturity: | June 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 index has finished below 95% of initial level, 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
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Call: | At par plus a call premium if each index closes at or above 95% of initial level on any semiannual observation date after one year; premium is 10% per year
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Initial index levels: | 3,621.63 for S&P, 1,819.816 for Russell, 29,638.64 for Dow
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Barrier levels: | 75% 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%
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Cusip: | 40438CC82
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