Published on 6/25/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.88 million autocallable barrier notes with step-up premium on stocks
By Kiku Steinfeld
Chicago, June 25 – HSBC USA Inc. priced $1.88 million of 0% autocallable barrier notes with step-up premium due May 6, 2024 linked to the least performing of the stocks of Apple Inc., Citigroup Inc. and American Airlines Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each stock closes at or above 90% of its initial level on any quarterly observation date. The premium is 16% per year.
If the notes are not called, meaning all stocks have finished below 90% of their initial levels, the payout will be par unless any stock has finished below its 65% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying stocks: | Apple Inc., Citigroup Inc. and American Airlines Group, Inc.
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| Amount: | $1.88 million
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| Maturity: | June 17, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless any stock has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing stock from its initial level
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| Call: | At par plus a call premium if each stock closes at or above 90% of its initial level on any quarterly observation date; premium is 16% per year
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| Initial stock levels: | $127.35 for Apple, $76.48 for Citi, $23.53 for Airlines
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| Barrier levels: | $82.7775 for Apple, $49.712 for Citi, $15.2945 for Airlines; 65% of initial levels
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| Pricing date: | June 11
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| Settlement date: | June 16
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40439JDH5
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