Published on 7/26/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $7.77 million autocallable contingent income barrier notes on indexes, ETF
By William Gullotti
Buffalo, N.Y., July 26 – HSBC USA Inc. priced $7.77 million of autocallable contingent income barrier notes due July 20, 2026 linked to the least performance of the iShares MSCI Emerging Markets ETF, the Nikkei Stock Average index and Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 9.3% if each underlier closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each underlier closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each underlier finishes at or above its 70% barrier value, the payout at maturity will be par plus any final coupon. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying assets: | Nikkei Stock Average index, Euro Stoxx Banks index, iShares MSCI Emerging Markets ETF
|
| Amount: | $7,771,000
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| Maturity: | July 20, 2026
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| Coupon: | 9.3% per year, payable quarterly if each underlier closes at or above coupon trigger on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each underlier finishes at or above barrier level, par plus any final coupon; otherwise, full exposure to decline of worst performer from initial level
|
| Call: | At par plus coupon if each underlier closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | $53.88 for ETF, 28,608.49 for Nikkei, 91.22 for Stoxx Banks
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| Coupon triggers: | $37.716 for ETF, 20,025.943 for Nikkei, 63.854 for Stoxx Banks; 70% of initial levels
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| Barrier levels: | $37.716 for ETF, 20,025.943 for Nikkei, 63.854 for Stoxx Banks; 70% of initial levels
|
| Pricing date: | July 14
|
| Settlement date: | July 19
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 40439JFY6
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