Published on 12/17/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.25 million autocallable barrier notes with step-up premium on stocks
By Taylor Fox
New York, Dec. 17 – HSBC USA Inc. priced $2.25 million of 0% autocallable barrier notes with step-up premium due Dec. 18, 2023 linked to the least performing of the common stocks of Apple, Inc., Delta Air Lines, Inc., JPMorgan Chase & Co. and Eli Lilly & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each stock closes at or above its initial level on any quarterly observation date after three months. The premium is 20.8% per year.
If the notes are not called, meaning the final level of at least one of the stocks is less than its initial level, the payout will be par unless any stock has finished below its 65% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing stock 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 stocks: | Apple, Inc., Delta Air Lines, Inc., JPMorgan Chase & Co. and Eli Lilly & Co.
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| Amount: | $2,252,000
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| Maturity: | Dec. 18, 2023
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called because at least one stock has finished below initial level, par unless any stock has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing stock from its initial level
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| Call: | At par plus a call premium if each stock closes at or above initial level on any quarterly observation date after three months; premium is 20.8% per year
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| Initial stock levels: | $121.78 for Apple, $40.69 for Delta, $118.30 for JPMorgan, $157.91 for Eli
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| Barrier levels: | 65% of initial levels
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| Pricing date: | Dec. 14
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| Settlement date: | Dec. 17
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40438CL82
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