Published on 9/27/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.05 million contingent income barrier autocalls on Teladoc, Tenet
By William Gullotti
Buffalo, N.Y., Sept. 27 – HSBC USA Inc. priced $4.05 million of autocallable contingent income barrier notes due July 9, 2026 linked to the least performing of the stocks of Teladoc Health, Inc. and Tenet Healthcare Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 12% if each stock closes at or above its coupon trigger level, 50% 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 one year.
If the notes are not called and each stock finishes at or above its 50% barrier value, the payout at maturity will be par plus the 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
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| Underlying stocks: | Teladoc Health, Inc., Tenet Healthcare Corp.
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| Amount: | $4,050,000
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| Maturity: | July 9, 2026
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| Coupon: | 12% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus final coupon; 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 initial level on any quarterly call observation date after one year
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| Initial levels: | $163.53 for Teladoc, $68.01 for Tenet
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| Coupon triggers: | $81.765 for Teladoc, $34.005 for Tenet; 50% of initial levels
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| Barrier levels: | $81.765 for Teladoc, $34.005 for Tenet; 50% of initial levels
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| Pricing date: | July 6
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| Settlement date: | July 9
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.35%
|
| Cusip: | 40439JED3
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