Published on 9/23/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.03 million contingent income autocallables on Disney, Netflix
By William Gullotti
Buffalo, N.Y., Sept. 23 – HSBC USA Inc. priced $4.03 million of contingent income autocallable securities due Sept. 20, 2024 linked to the worst performing of the stocks of Walt Disney Co. and Netflix, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 12.7% if each stock closes at or above its coupon barrier, 75% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date.
The payout at maturity will be par plus the final coupon unless any stock finishes below its 75% downside threshold, in which case investors will be fully exposed to the worst performer’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stocks: | Walt Disney Co., Netflix, Inc.
|
| Amount: | $4,025,350
|
| Maturity: | Sept. 20, 2024
|
| Coupon: | 12.7% per year, payable each quarter if each stock closes at or above coupon barrier on determination date for that period
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par plus final coupon; otherwise, full exposure to decline of worst performer from its initial level
|
| Call: | Par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date
|
| Initial levels: | $183.47 for Disney, $589.35 for Netflix
|
| Coupon barrier levels: | $137.6025 for Disney, $442.0125 for Netflix; 75% of initial levels
|
| Downside thresholds: | $137.6025 for Disney, $442.0125 for Netflix; 75% of initial levels
|
| Pricing date: | Sept. 17
|
| Settlement date: | Sept. 22
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 40439K177
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
