Published on 5/7/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $750,000 autocallable contingent income barrier notes on stocks
By Wendy Van Sickle
Columbus, Ohio, May 7 – HSBC USA Inc. priced $750,000 of autocallable contingent income barrier notes due April 28, 2022 linked to the least performing of the common stocks of Pinduoduo Inc., Align Technology, Inc. and Tesla Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 27.25% if each stock closes at or above its coupon trigger level, 60% 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 monthly call observation date after three months.
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.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Pinduoduo Inc., Align Technology, Inc. and Tesla Inc.
|
| Amount: | $750,000
|
| Maturity: | April 28, 2022
|
| Coupon: | 27.25% 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, full exposure to decline of least-performing stock
|
| Call: | At par plus coupon if each stock closes at or above initial level on any monthly call observation date after three months
|
| Initial levels: | $125.61 for Pinduoduo, $596.20 for Align and $718.99 for Tesla
|
| Coupon triggers: | $75.366 for Pinduoduo, $357.72 for Align and $431.394 for Tesla; 60% of initial levels
|
| Barrier levels: | $75.366 for Pinduoduo, $357.72 for Align and $431.394 for Tesla; 60% of initial levels
|
| Pricing date: | April 20
|
| Settlement date: | April 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.6%
|
| Cusip: | 40438C6G1
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
