Published on 10/26/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $581,000 autocallable barrier notes with step-up premium on indexes
By Taylor Fox
New York, Oct. 26 – HSBC USA Inc. priced $581,000 of 0% autocallable barrier notes with step-up premium due Sept. 28, 2023 linked to the least performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 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 the any semiannual observation date. The premium is 14% per year.
If all indexes close above their initial levels on the final valuation date, investors will receive par plus the final 42% call premium.
If note called, 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.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index and Russell 2000 index
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| Amount: | $581,000
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| Maturity: | Sept. 28, 2023
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 42% premium if all indexes finish above their initial levels, relating to final call observation date; par if worst performer declines but finishes above 70% of initial level; otherwise, full exposure to losses of worst performer
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| Call: | At par plus a 14% annualized call premium if each index closes at or of its initial level on any semiannual observation date
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| Initial index levels: | 1,451.458 for Russell, 10,833.33 for Nasdaq, 26,763.13 for Dow
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| Barrier levels: | 70% of initial levels
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| Pricing date: | Sept. 23
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| Settlement date: | Sept. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Cusip: | 40438CWW7
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