Published on 10/14/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $481,000 autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 14 – HSBC USA Inc. priced $481,000 of 0% autocallable barrier notes with step-up premium due Oct. 6, 2025 linked to the lesser performing of Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning Oct. 6, 2021, the notes will be called at par plus a call premium if each index closes at or above the initial level on any annual observation date. The call premium is 11.75% per year.
The payout will be par unless any index has finished below its 60% 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, Russell 2000 index and Nasdaq-100 index
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Amount: | $481,000
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Maturity: | Oct. 6, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | 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: | Beginning Oct. 6, 2021, at par plus a call premium of 11.75% per year if each index closes at or above initial level on any annual observation date
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Initial levels: | 27,781.7 for Dow, 11,481.06 for Nasdaq-100, 1,507.692 for Russell 2000
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Barrier values: | 60% of initial levels
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Pricing date: | Sept. 30
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Settlement date: | Oct. 5
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.625%
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Cusip: | 40438CVC2
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