Published on 5/2/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $818,000 autocallable contingent income barrier notes on gas stocks
Chicago, May 3 – HSBC USA Inc. priced $818,000 of autocallable contingent income barrier notes due March 2, 2023 linked to the least performing of the common stock of Exxon Mobil Corp., the common stock of Chevron Corp. and the American Depositary Shares of BP plc, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 16% if each stock 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 stock closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each stock finishes at or above its 65% barrier value, the payout at maturity will be par plus any final coupon. Otherwise, the payout will be a number of shares of the least-performing stock equal to $1,000 divided by that stock’s initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Exxon Mobil Corp., Chevron Corp. and BP plc
|
| Amount: | $818,000
|
| Maturity: | March 2, 2023
|
| Coupon: | 16% per year, payable monthly if each stock closes at or above coupon trigger on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above barrier level, par plus any final coupon; otherwise, number of shares of least-performing stock equal to $1,000 divided by that stock’s initial share price
|
| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | $55.76 for Exxon, $102.35 for Chevron and $25.59 for BP
|
| Coupon triggers: | $39.032 for Exxon, $71.645 for Chevron and $17.913 for BP; 70% of initial levels
|
| Barrier levels: | $36.244 for Exxon, $66.5275 for Chevron and $16.6335 for BP; 65% of initial levels
|
| Pricing date: | Feb. 25
|
| Settlement date: | March 2
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40428HQB1
|
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