Published on 7/26/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $25.05 million step-down trigger autocalls on S&P, Russell
Chicago, July 26 – HSBC USA Inc. priced $25.05 million of 0% step-down trigger autocallable notes due July 23, 2026 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
After one year, the notes will be automatically called at par of $10 plus 9% per year if each asset closes at or above its initial level on any semiannual observation date, except the final one when the call threshold will be the 90% step-down threshold level.
If the notes are not subject to an automatic call, that means the final level of at least one asset will be less than its step-down threshold, 90% of its initial level.
Investors will receive par if both indexes finish above the 70% downside threshold and will be fully exposed to the losses of the worst performer if either index finishes below 70% of its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Step-down trigger autocallable notes
|
| Underlying indexes: | Russell 2000 index and S&P 500 index
|
| Amount: | $25,050,000
|
| Maturity: | July 23, 2026
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Call: | After one year, at par plus 9% per year if each index closes at or above its initial level on any semiannual observation date except the final one, when the call level will be the step-down threshold
|
| Payout at maturity: | If index finishes above 90% of initial level, call return; if indexes finish below step-down threshold but worst performer finishes above downside threshold, par; otherwise, full exposure to losses of worst performer
|
| Initial levels: | 4,258.49 for S&P 500, 2,130.680 for Russell 2000
|
| Step-down threshold: | 3,832.641 for S&P 500, 1,917.612 for Russell 2000, 90% of initial levels
|
| Downside thresholds: | 2,980.943 for S&P 500, 1,491.476 for Russell 2000, 70% of initial levels
|
| Pricing date: | July 19
|
| Settlement date: | July 23
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 0.75%
|
| Cusip: | 40439K656
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
