Published on 1/14/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $7 million callable contingent income barrier notes on Stoxx 50, Russell, S&P
By Kiku Steinfeld
Chicago, Jan. 14 – HSBC USA Inc. priced $7 million of callable contingent income barrier notes due July 12, 2023 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 10.5% if each index closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly observation date.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 60% barrier level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Russell 2000 index, Euro Stoxx 50 index, S&P 500 index
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| Amount: | $7 million
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| Maturity: | July 12, 2023
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| Coupon: | 10.5%, payable quarterly if each index closes at or above coupon trigger on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus coupon, if any; otherwise, exposure to decline of worst-performing index
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| Call option: | At par plus any coupon on any quarterly observation date
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| Initial levels: | 2,096.885 for Russell, 3,622.42 for Stoxx 50, 3,803.79 for S&P
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| Coupon triggers: | 70% of initial levels
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| Barrier levels: | 60% of initial levels
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| Pricing date: | Jan. 7
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| Settlement date: | Jan. 12
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| Agent: | HSBC Seurities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40438CR37
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