Published on 7/30/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.65 million contingent income barrier autocalls on four stocks
By William Gullotti
Buffalo, N.Y., July 30 – HSBC USA Inc. priced $5.65 million of autocallable contingent income barrier notes due July 31, 2023 linked to the least performing of the stocks of Amazon.com, Inc., Target Corp., Costco Wholesale Corp. and Walmart 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 12.25% if each stock closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
The notes will be automatically 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 70% 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: | Amazon.com, Inc., Target Corp., Costco Wholesale Corp., Walmart Inc.
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| Amount: | $5,650,000
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| Maturity: | July 31, 2023
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| Coupon: | 12.25% 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 monthly call observation date after three months
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| Initial levels: | $3,699.82 for Amazon, $260.86 for Target, $423.23 for Costco, $142.63 for Walmart
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| Coupon triggers: | $2,589.874 for Amazon, $182.602 for Target, $296.261 for Costco, $99.841 for Walmart; 70% of initial levels
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| Barrier levels: | $2,589.874 for Amazon, $182.602 for Target, $296.261 for Costco, $99.841 for Walmart; 70% of initial levels
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| Pricing date: | July 26
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| Settlement date: | July 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.6%
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| Cusip: | 40439JGN9
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