Published on 6/24/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.5 million autocallable barrier notes with step-up premium on two ETFs
By William Gullotti
Buffalo, N.Y., June 24 – HSBC USA Inc. priced $1.5 million of 0% autocallable barrier notes with step-up premium due May 14, 2025 linked to the lesser performing of the iShares Global Clean Energy ETF and the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each ETF closes at or above its initial level on any quarterly observation date after six months. The premium is 14.2% per year.
If the notes are not called, the payout will be par unless either ETF finishes below its 65% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing fund from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium
|
| Underlying funds: | iShares Global Clean Energy ETF, Energy Select Sector SPDR Fund
|
| Amount: | $1,500,000
|
| Maturity: | May 14, 2025
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par unless either ETF finishes below barrier level, in which case investors will lose 1% for each 1% decline of least-performing fund from its initial level
|
| Call: | At par plus a call premium if each ETF closes at or above its initial level on any quarterly observation date after six months; premium is 14.2% per year
|
| Initial asset levels: | $21.43 for iShares, $52.27 for SPDR
|
| Barrier levels: | $13.9295 for iShares, $33.9755 for SPDR; 65% of initial levels
|
| Pricing date: | May 11
|
| Settlement date: | May 14
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.75%
|
| Cusip: | 40439JAP0
|
|
|
© 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.
