Published on 9/24/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.54 million autocallable barrier notes with step-up premium on three indexes
By William Gullotti
Buffalo, N.Y., Sept. 24 – HSBC USA Inc. priced $5.54 million of 0% autocallable barrier notes with step-up premium due Sept. 22, 2026 linked to the lesser performing of the Nasdaq-100 index, the S&P 500 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 an 11.05% annual call premium if each index closes at or above its call level, 105% of initial level, on any semiannual observation date after one year.
If the notes are not called, the payout will be par unless any index has finished below its 65% 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: | Nasdaq-100 index, S&P 500 index, Dow Jones industrial average
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| Amount: | $5,536,000
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| Maturity: | Sept. 22, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes 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 an 11.05% annual call premium if each index closes at or above its 105% call level on any semiannual observation date after one year
|
| Initial index levels: | 15,333.47 for Nasdaq, 4,432.99 for S&P, 34,584.88 for Dow
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| Barrier levels: | 9,966.7555 for Nasdaq, 2,881.4435 for S&P, 22,480.172 for Dow; 65% of initial levels
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| Pricing date: | Sept. 17
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| Settlement date: | Sept. 22
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.625%
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| Cusip: | 40439JMS1
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