Published on 3/25/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.31 million autocallable barrier notes with step-up premium on stock basket
By Wendy Van Sickle
Columbus, Ohio, March 25 – HSBC USA Inc. priced $1.31 million of 0% autocallable barrier notes with step-up premium due March 19, 2026 linked to a basket containing equal weights of the stocks of JPMorgan Chase & Co., Bank of America Corp,, United Continental Holdings Inc. and Southwest Airlines Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if the basket closes at or above its initial level on any quarterly call observation date after one year. The call premium is 8% per year.
If the notes are not called and the basket finishes at or above its 60% barrier level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the basket.
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 basket: | JPMorgan Chase & Co., Bank of America Corp,, United Continental Holdings Inc. and Southwest Airlines Co., equal weights
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| Amount: | $1,307,000
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| Maturity: | March 19, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If basket finishes at or above its 60% barrier level, par; otherwise, full exposure to losses
|
| Call: | At par plus a call premium of 8% per year if basket closes at or above its initial level on any quarterly call date after one year
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| Initial basket level: | $153.51 for JPMorgan, $37.64 for BofA, $59.81 for United Continental and $60.54 for Southwest
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| Barrier value: | 60% of initial level
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| Pricing date: | March 16
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| Settlement date: | March 19
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40438C3M1
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