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.
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Issue: | Autocallable barrier notes with step-up premium
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Underlying indexes: | Dow Jones industrial average and Nasdaq-100 index
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Amount: | $497,000
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Maturity: | May 31, 2022
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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 quarterly observation date after six months; premium is 13.1% per year
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Initial index levels: | 24,995.11 for Dow, 9,389.977 for Nasdaq
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Barrier levels: | 80% of initial levels
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Pricing date: | May 26
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Settlement date: | May 29
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.75%
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Cusip: | 40438CHZ7
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