Published on 12/29/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $13.7 million trigger autocallable contingent yield notes on Russell, S&P
By William Gullotti
Buffalo, N.Y., Dec. 29 – HSBC USA Inc. priced $13.7 million of trigger autocallable contingent yield notes with daily accruing contingent coupon due Nov. 17, 2026 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest, payable quarterly, will accrue at an annual rate of 6.17% for each day that all indexes close at or above the 75% coupon barrier.
The notes will be called at par of $10 plus any accrued coupon if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par plus any accrued final coupon unless any index finishes below the downside threshold level, 75% of its initial level, in which case investors will lose 1% for every 1% loss of the worst performer from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes with daily accruing contingent coupon
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $13,698,200
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| Maturity: | Nov. 17, 2026
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| Coupon: | 6.17% annualized, accruing each day that all indexes close at or above coupon barrier; paid quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any accrued final coupon unless any index finishes below downside threshold, in which case 1% loss for each 1% decline of worst performer from initial level
|
| Call: | At par plus any coupon accrued if each index closes at or above initial levels on any quarterly observation date after six months
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| Initial index levels: | 2,411.776 for Russell, 4,682.85 for S&P
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| Coupon barriers: | 1,808.832 for Russell, 3,512.138 for S&P; 75% of initial levels
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| Downside thresholds: | 1,808.832 for Russell, 3,512.138 for S&P; 75% of initial levels
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| Pricing date: | Nov. 12
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| Settlement date: | Nov. 17
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40390L883
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