Published on 6/9/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million autocallable contingent income barrier notes on indexes
By Kiku Steinfeld
Chicago, June 9 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due May 13, 2024 linked to the least performing of the S&P 500 index, the Nasdaq-100 index and the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 9.6% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any coupon observation date after three months.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 70% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index, Nasdaq-100 index and Euro Stoxx Banks index
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| Amount: | $1 million
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| Maturity: | May 13, 2024
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| Coupon: | 9.6%, payable monthly if each index closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par plus any coupon; otherwise, exposure to decline of worst-performing index
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| Call: | At par plus coupon if each stock closes at or above initial price on any monthly call observation date after three months
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| Initial levels: | 4,232.60 for S&P, 93.93 for Stoxx, 13,719.63 for Nasdaq
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| Barrier levels: | 2,962.82 for S&P, 65.751 for Stoxx, 9,603.741 for Nasdaq, 70% of initial levels
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| Trigger levels: | 2,962.82 for S&P, 65.751 for Stoxx, 9,603.741 for Nasdaq, 70% of initial levels
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| Pricing date: | May 7
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| Settlement date: | May 12
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.7%
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| Cusip: | 40439JAN5
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