Published on 2/26/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $9.17 million autocallable barrier notes with step-up premium on indexes
By Sarah Lizee
Olympia, Wash., Feb. 26 – HSBC USA Inc. priced $9.17 million of 0% autocallable barrier notes with step-up premium and step-down call threshold due Feb. 27, 2025 linked to the lesser performing of the Euro Stoxx 50 index and the FTSE 100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning Aug. 24, 2020, the notes will be called at par plus a call premium if each index closes at or above its initial level on the first four quarterly observation dates or 95% of the initial level on the remaining quarterly observation dates. The call premium is 9.85% per year.
The payout will be par unless any index has finished below its 70% 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 and step-down call threshold
|
| Underlying indexes: | Euro Stoxx 50, FTSE 100
|
| Amount: | $9,165,000
|
| Maturity: | Feb. 27, 2025
|
| 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: | Beginning Aug. 24, 2020, at par plus a call premium of 9.85% per year if each index closes at or above its initial level on the first four quarterly observation dates or 95% of the initial level on the remaining quarterly observation dates
|
| Initial index levels: | 3,647.98 for Stoxx and 7,156.83 for FTSE
|
| Barrier levels: | 2,553.586 for Stoxx and 5,009.781 for FTSE; 70% of initial levels
|
| Pricing date: | Feb. 24
|
| Settlement date: | Feb. 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.85%
|
| Cusip: | 40435U6V1
|
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