Published on 9/14/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.89 million contingent income barrier autocalls on Zoom, Roku, Moderna
By William Gullotti
Buffalo, N.Y., Sept. 14 – HSBC USA Inc. priced $2.89 million of autocallable contingent income barrier notes due Sept. 9, 2024 linked to the least performing of the stocks of Zoom Video Communications, Inc., Roku, Inc. and Moderna, 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 21.75% 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 90% of its initial level on any quarterly call observation date.
If each stock finishes at or above its coupon trigger level, the payout at maturity will be par plus the final coupon.
If the worst performer falls below the coupon trigger but finishes at or above 50% barrier value, the payout at maturity will be par. 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: | Zoom Video Communications, Inc., Roku, Inc., Moderna, Inc.
|
| Amount: | $2,885,000
|
| Maturity: | Sept. 9, 2024
|
| Coupon: | 21.75% 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 coupon trigger level, par plus final coupon; if the worst performer falls below coupon trigger but finishes at or above barrier level, par; otherwise, full exposure to decline of least-performing stock from its initial level
|
| Call: | At par plus coupon if each stock closes at or above 90% of initial level on any quarterly call observation date
|
| Initial levels: | $298.29 for Zoom, $342.27 for Roku, $416.70 for Moderna
|
| Coupon triggers: | $178.974 for Zoom, $205.362 for Roku, $250.02 for Moderna; 60% of initial levels
|
| Barrier levels: | $149.145 for Zoom, $171.135 for Roku, $208.35 for Moderna; 50% of initial levels
|
| Pricing date: | Sept. 3
|
| Settlement date: | Sept. 9
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 4%
|
| Cusip: | 40428HQX3
|
|
|
© 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.
