Published on 1/28/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.63 million contingent income notes on S&P, biotech ETF
By Taylor Fox
New York, Jan. 28 – HSBC USA Inc. priced $2.63 million of callable contingent income barrier notes due Jan. 29, 2024 linked to the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annualized rate of 11.1% if each underlying closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any semiannual call observation date.
If the notes are not called and each underlying finishes at or above its 70% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing underlying from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying assets: | S&P 500 index and SPDR S&P Biotech ETF
|
| Amount: | $2,626,000
|
| Maturity: | Jan. 29, 2024
|
| Coupon: | 11.1%, payable semiannually if each underlying closes at or above coupon trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each underlying finishes at or above barrier level, par plus final coupon; otherwise, 1% loss for each 1% decline of least-performing underlying from initial level
|
| Call option: | At par plus any coupon on any semiannual call observation date
|
| Initial levels: | 3,841.47 for S&P and $152.56 for ETF
|
| Coupon trigger: | 2,689.029 for S&P and $106.792 for ETF, 70% of initial prices
|
| Barrier levels: | 2,689.029 for S&P and $106.792 for ETF, 70% of initial prices
|
| Pricing date: | Jan. 22
|
| Settlement date: | Jan. 27
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40438CQ79
|
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