Published on 2/5/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.18 million contingent income autocallables on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Feb. 5 – HSBC USA Inc. priced $5.18 million of contingent income autocallable securities due Jan. 20, 2023 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a contingent quarterly payment of 7.25% per annum if each index closes at or above the barrier level, which is 75% of the initial index level, on a quarterly determination date.
The notes will be automatically redeemed at par plus the contingent quarterly coupon if each index closes at or above the initial index level on any quarterly redemption determination date.
If the notes are not called and the final index level is greater than or equal to the 75% downside threshold level, the payout at maturity will be par plus the final contingent quarterly coupon. Otherwise, investors will be fully exposed to the worst performing index's decline from its initial level.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is a dealer.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $5,178,000
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| Maturity: | Jan. 20, 2023
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| Coupon: | 7.25% annual rate, if each index closes at or above barrier level on a quarterly determination date
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| Price: | Par
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| Payout at maturity: | If final index level of each index is greater than or equal to downside threshold level, par plus final contingent quarterly coupon; otherwise, investors will be fully exposed to worst performing index's decline from its initial level
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| Call: | At par plus contingent quarterly coupon if each index closes at or above initial index level on any quarterly redemption determination date
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| Initial index levels: | 2,123.201 for Russell and 3,768.25 for S&P
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| Coupon barrier levels: | 1,592.40075 for Russell and 2,826.1875 for S&P, 75% of initial level
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| Downside threshold levels: | 1,592.40075 for Russell and 2,826.1875 for S&P, 75% of initial level
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| Pricing date: | Jan. 15
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| Settlement date: | Jan. 21
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| Agent: | HSBC Securities (USA) Inc.
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| Selected dealer: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 40438CR60
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