Published on 4/5/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $531,000 autocallable barrier notes with step-up premium on stocks
By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $531,000 of 0% autocallable barrier notes with step-up premium due March 24, 2026 linked to the least performing of the stocks of Tesla Inc., Micron Technology, Inc., Advanced Micro Devices, Inc. and Roku, Inc., 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 90% of its initial level on any semiannual observation date after a year. The premium is 46% per year.
If the notes are not called, meaning all stocks have finished below 90% of their initial levels, the payout will be par unless any stock has finished below its 50% 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: | Tesla Inc., Micron Technology, Inc., Advanced Micro Devices, Inc. and Roku, Inc.
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| Amount: | $531,000
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| Maturity: | March 24, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | 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 90% of its initial level on any semiannual observation date after a year; premium is 46% per year
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| Initial stock levels: | $670.00 for Tesla, $91.28 for Micron, $80.30 for Advanced Micro and $356.32 | for Roku
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| Barrier levels: | $335.00 for Tesla, $45.64 for Micron, $40.15 for Advanced Micro and $178.16 | for Roku; 50% of initial levels
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| Pricing date: | March 22
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| Settlement date: | March 25
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40438C3L3
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