Published on 2/16/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $210,000 autocallable barrier notes with step-up premium on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Feb. 16 – HSBC USA Inc. priced $210,000 of 0% autocallable barrier notes with step-up premium due Feb. 3, 2026 linked to the lesser performing of 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 a call premium if each index closes at or above its initial level on any annual observation date. The premium is 9.2% per year.
If the notes are not called, the payout will be par unless any index has finished below its 70% 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 and Russell 2000
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Amount: | $210,000
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Maturity: | Feb. 3, 2026
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless either 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 its initial level on any annual observation date; premium is 9.2% per year
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Initial index levels: | 3,714.24 for S&P, 2,073.641 for Russell
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Barrier levels: | 2,599.968 for S&P, 1,451.5487 for Russell; 70% of initial levels
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Pricing date: | Jan. 29
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Settlement date: | Feb. 3
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.625%
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Cusip: | 40438CP88
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