Published on 10/8/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million contingent income barrier autocalls on Luminar, Tesla
By William Gullotti
Buffalo, N.Y., Oct. 8 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due July 29, 2024 linked to the performance of the stocks of Luminar Technologies, 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 15.5% 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 coupon trigger level, the payout at maturity will be par plus the final coupon.
If the least-performing stock falls below its coupon trigger but finishes at or above its 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Luminar Technologies, Inc., Tesla, Inc.
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| Amount: | $1,000,000
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| Maturity: | July 29, 2024
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| Coupon: | 15.5% per year, payable monthly if each stock closes at or above coupon trigger on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above coupon trigger, par plus final coupon; if laggard stock declines but finishes above barrier level, par; otherwise, full exposure to decline of least-performing stock from its initial level
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| Call: | At par plus coupon if each stock closes at or above initial level on any monthly call observation date after three months
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| Initial levels: | $17.54 for Luminar, $643.38 for Tesla
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| Coupon triggers: | $10.524 for Luminar, $386.028 for Tesla; 60% of initial levels
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| Barrier levels: | $8.77 for Luminar, $321.69 for Tesla; 50% of initial levels
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| Pricing date: | July 23
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| Settlement date: | July 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
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| Cusip: | 40439JGM1
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