Published on 7/30/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.07 million contingent income barrier autocalls with memory on tech stocks
By William Gullotti
Buffalo, N.Y., July 30 – HSBC USA Inc. priced $5.07 million of autocallable contingent income barrier notes with memory coupon due July 29, 2024 linked to the least performing of the common stocks of Apple Inc., Dexcom, Inc. and Marvell Technology, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11% if each stock closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period. Any previously unpaid coupons will also be paid.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial level on any quarterly call observation date after one year.
If the notes are not called and each stock finishes at or above its 60% barrier value, the payout at maturity will be par plus any final coupon. Otherwise, investors will be fully exposed to the decline of the least-performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying stocks: | Apple Inc., Dexcom, Inc., Marvell Technology, Inc.
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| Amount: | $5,072,000
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| Maturity: | July 29, 2024
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| Coupon: | 11% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period; coupon payments will also include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus the final coupon; otherwise, full exposure to decline of least-performing stock from its initial level
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| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after one year
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| Initial levels: | $148.56 for Apple, $460.72 for Dexcom, $58.92 for Marvell
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| Coupon triggers: | $89.136 for Apple, $276.432 for Dexcom, $35.352 for Marvell; 60% of initial levels
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| Barrier levels: | $89.136 for Apple, $276.432 for Dexcom, $35.352 for Marvell; 60% of initial levels
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| Pricing date: | July 23
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| Settlement date: | July 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40439JGJ8
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