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Published on 6/3/2020 in the Prospect News Structured Products Daily.

New Issue: HSBC sells $497,000 autocallable barrier notes with step-up premium on Dow, Nasdaq

By Sarah Lizee

Olympia, Wash., June 3 – HSBC USA Inc. priced $497,000 of 0% autocallable barrier notes with step-up premium due May 31, 2022 linked to the lesser performing of the Dow Jones industrial average and the Nasdaq-100 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 quarterly observation date after six months. The premium is 13.1% per year.

The payout will be par unless any index has finished below its 80% 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.
Issue:Autocallable barrier notes with step-up premium
Underlying indexes:Dow Jones industrial average and Nasdaq-100 index
Amount:$497,000
Maturity:May 31, 2022
Coupon:0%
Price:Par
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
Call:At par plus a call premium if each index closes at or above its initial level on any quarterly observation date after six months; premium is 13.1% per year
Initial index levels:24,995.11 for Dow, 9,389.977 for Nasdaq
Barrier levels:80% of initial levels
Pricing date:May 26
Settlement date:May 29
Agent:HSBC Securities (USA) Inc.
Fees:1.75%
Cusip:40438CHZ7

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