Published on 9/11/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $655,000 autocallable contingent income barrier notes on tech stocks
By Kiku Steinfeld
Chicago, Sept. 11 – HSBC USA Inc. priced $655,000 of autocallable contingent income barrier notes due Sept. 8, 2023 linked to the least performing of the common stocks of Amazon.com, Inc., Apple, Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 11.76% if each stock closes at or above its coupon trigger level, 60% of the initial level, on the observation date for that month.
The notes will be called at par plus the coupon if each stock closes at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and each stock finishes at or above its 60% 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 stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Amazon.com, Inc., Apple, Inc., Microsoft Corp.
|
| Amount: | $655,000
|
| Maturity: | Sept. 8, 2023
|
| Coupon: | 11.76%, payable monthly if each stock closes at or above coupon trigger level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after six months
|
| Initial levels: | $3,531.45 for Amazon, $131.40 for Apple and $231.65 for Microsoft
|
| Coupon trigger levels: | 60% of initial prices
|
| Barrier levels: | 60% of initial prices
|
| Pricing date: | Sept. 2
|
| Settlement date: | Sept. 8
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.75%
|
| Cusip: | 40438CVJ7
|
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