Published on 9/1/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $715,000 autocallable contingent income barrier notes on Disney, Netflix
By Wendy Van Sickle
Columbus, Ohio, Sept. 1 – HSBC USA Inc. priced $715,000 of autocallable contingent income barrier notes due June 24, 2024 linked to the least performing of the common stocks of Walt Disney Co. and Netflix, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.75% if each stock closes at or above its coupon trigger level, 65% 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 65% 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: | Walt Disney Co., Netflix, Inc.
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| Amount: | $715,000
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| Maturity: | June 24, 2024
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| Coupon: | 8.75% per year, payable quarterly 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; otherwise, full exposure to decline of least-performing stock
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| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | $172.42 for Disney, $500.77 for Netflix
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| Coupon trigger levels: | $112.073 for Disney, $325.5005 for Netflix; 65% of initial levels
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| Barrier levels: | $112.073 for Disney, $325.5005 for Netflix; 65% of initial levels
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| Pricing date: | June 18
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| Settlement date: | June 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40439JDF9
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