Published on 5/2/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million autocallable barrier notes with step-up premium on indexes
By Kiku Steinfeld
Chicago, May 3 – HSBC USA Inc. priced $1 million of 0% autocallable barrier notes with step-up premium and upside participation due April 20, 2026 linked to the lesser 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 call threshold, 102% of its initial level, on the any of four annual observation dates. The premium is 12.75% per year.
If the notes are not called and the least-performing index’s return is greater than zero, the payout at maturity will be par plus the least-performing index’s return. If the least-performing index’s return is less than or equal to zero but greater than or equal to negative 30%, the payout will be par. If the least-performing index’s return is less than negative 30%, 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 upside participation
|
| Underlying indexes: | Nasdaq-100 index, Dow Jones industrial average and Russell 2000 index
|
| Amount: | $1,002,000
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| Maturity: | April 20, 2026
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If notes are not called and least-performing index’s return is greater than zero, par plus least-performing index’s return; if least-performing index’s return is less than or equal to zero but greater than or equal to negative 30%, par; otherwise, 1% loss for each 1% decline of least-performing index from initial level
|
| Call: | At par plus a call premium of 12.75% per year if each index closes at or above its call threshold, 102% of its initial level, on April 14, 2022, April 17, 2023, April 17, 2024 or April 15, 2025
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| Initial index levels: | 2,257.068 for Russell, 34,035.99 for Dow, 14,026.19 for Nasdaq
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| Barrier levels: | 1,579.9476 for Russell, 23,825.193 for Dow, 9,818.333 for Nasdaq; 70% of initial levels
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| Pricing date: | April 15
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| Settlement date: | April 20
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40438C5V9
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