Published on 12/7/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $73,000 contingent income barrier autocalls on three tech stocks
By William Gullotti
Buffalo, N.Y., Dec. 7 – HSBC USA Inc. priced $73,000 of autocallable contingent income barrier notes due Aug. 21, 2023 linked to the least performing of the stocks of Cisco Systems, Inc., Palo Alto Networks, Inc. and DocuSign, 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 11% 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.
If the notes are not called and each stock finishes at or above its 60% 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Cisco Systems, Inc., Palo Alto Networks, Inc., DocuSign, Inc.
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| Amount: | $73,000
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| Maturity: | Aug. 21, 2023
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| Coupon: | 11% 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 barrier level, par plus final coupon; 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 quarterly call observation date
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| Initial levels: | $56.01 for Cisco, $365.77 for Palo Alto, $285.58 for DocuSign
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| Coupon triggers: | $33.606 for Cisco, $219.462 for Palo Alto, $171.348 for DocuSign; 60% of initial levels
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| Barrier levels: | $33.606 for Cisco, $219.462 for Palo Alto, $171.348 for DocuSign; 60% of initial levels
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| Pricing date: | Aug. 17
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| Settlement date: | Aug. 20
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.775%
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| Cusip: | 40439JJK2
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