Published on 5/20/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.04 million callable contingent income barrier notes on S&P, Biotech ETF
By Wendy Van Sickle
Columbus, Ohio, May 20 – HSBC USA Inc. priced $4.04 million of callable contingent income barrier notes due May 4, 2026 linked to the least performing of the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Every quarter, the notes will pay a contingent coupon at an annual rate of 9.8% if each asset closes at or above its coupon trigger level, 80% of its initial level, on the observation date for that period.
The notes will be callable at par on any quarterly call observation date after one year.
The payout at maturity will be par plus the final coupon, if any, unless either asset finishes below its 60% barrier level, in which case investors will be fully exposed to the decline of the lowest performing asset.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying assets: | S&P 500 index and SPDR S&P Biotech ETF
|
| Amount: | $4,043,000
|
| Maturity: | May 4, 2026
|
| Coupon: | 9.8%, payable quarterly if each asset closes at or above trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each asset finishes at or above barrier level, par; otherwise, exposure to decline of worst-performing asset
|
| Call option: | At par on any quarterly call observation date after one year
|
| Initial level: | 4,211.47 for S&P, $138.06 for ETF
|
| Coupon trigger levels: | 3,369.176 for S&P, $110.448 for ETF, 80% of initial levels
|
| Barrier levels: | 2,526.882 | for S&P, $82.836 for ETF, 60% of initial levels
|
| Pricing date: | April 29
|
| Settlement date: | May 4
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40438C6N6
|
|
|
© 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.
