Published on 9/29/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $610,000 autocallable contingent income barrier notes on two stocks
By Kiku Steinfeld
Chicago, Sept. 29 – HSBC USA Inc. priced $610,000 of autocallable contingent income barrier notes due March 20, 2023 linked to the least performing of the common stocks of Roku, Inc. and Apple 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 12% 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 quarterly call observation date after six 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. 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Roku, Inc., Apple Inc.
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| Amount: | $610,000
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| Maturity: | March 20, 2023
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| Coupon: | 12% per year, payable monthly 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; 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 quarterly call observation date after six months
|
| Initial levels: | $318.73 for Roku, $149.03 for Apple
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| Coupon trigger levels: | $191.238 for Roku, $89.418 for Apple; 60% of initial levels
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| Barrier levels: | $191.238 for Roku, $89.418 for Apple; 60% of initial levels
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40439JMU6
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