Published on 5/14/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.67 million autocallable barrier notes with step-up premium on indexes
By Wendy Van Sickle
Columbus, Ohio, May 14 – HSBC USA Inc. priced $1.67 million of 0% autocallable barrier notes with step-up premium and upside participation due April 30, 2026 linked to the lesser performing of the S&P 500 index, 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 any annual observation dates. The premium is 8% 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.
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| Issue: | Autocallable barrier notes with step-up premium and upside participation
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| Underlying indexes: | Nasdaq-100 index, S&P 500 index and Russell 2000 index
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| Amount: | $1,671,000
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| Maturity: | April 30, 2026
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| Coupon: | 0%
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| 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 8% per year if each index closes at or above initial level on any annual observation date
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| Initial index levels: | 13,960.28 for Nasdaq, 2,301.267 for Russell, 4,186.72 for S&P
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| Barrier levels: | 9,772.196 for Nasdaq, 1,610.8869 for Russell, 2,930.704
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| for S&P; 70% of initial levels
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| Pricing date: | April 27
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| Settlement date: | April 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40438C4U2
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