Published on 11/15/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2 million contingent income barrier autocalls on three stocks
By William Gullotti
Buffalo, N.Y., Nov. 15 – HSBC USA Inc. priced $2 million of autocallable contingent income barrier notes due Nov. 16, 2026 linked to the least performing of the stocks of Paypal Holdings, Inc., MercadoLibre, Inc. and Palantir Technologies 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 18.88% 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 monthly call observation date after three months.
If the notes are not called and each stock finishes at or above its coupon trigger, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon trigger level but at or above its 50% barrier value, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
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: | Paypal Holdings, Inc., MercadoLibre, Inc., Palantir Technologies Inc.
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| Amount: | $2 million
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| Maturity: | Nov. 16, 2026
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| Coupon: | 18.88% 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 coupon trigger level, par plus final coupon; if worst performer finishes below coupon trigger but at or above barrier level, par; 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: | $205.42 for Paypal, $1,709.98 for MercadoLibre, $24.25 for Palantir
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| Coupon triggers: | $123.252 for Paypal, $1,025.988 for MercadoLibre, $14.55 for Palantir; 60% of initial levels
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| Barrier levels: | $102.71 for Paypal, $854.99 for MercadoLibre, $12.125 for Palantir; 50% of initial levels
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| Pricing date: | Nov. 9
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| Settlement date: | Nov. 15
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40439JSG1
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