Published on 7/16/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million contingent income barrier autocalls on Alibaba, Citi, Wells Fargo
By William Gullotti
Buffalo, N.Y., July 16 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due July 16, 2024 linked to the least performing of the stocks of Alibaba Group Holding Ltd., Citigroup Inc. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 17.35% 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 called at par plus the coupon if each stock closes at or above its initial level on any monthly call observation date after six 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: | Alibaba Group Holding Ltd., Citigroup Inc., Wells Fargo & Co.
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| Amount: | $1,000,000
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| Maturity: | July 16, 2024
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| Coupon: | 17.35% 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 six months
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| Initial levels: | $199.85 for Alibaba, $66.73 for Citigroup, $42.32 for Wells Fargo
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| Coupon triggers: | $139.895 for Alibaba, $46.711 for Citigroup, $29.624 for Wells Fargo; 70% of initial levels
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| Barrier levels: | $139.895 for Alibaba, $46.711 for Citigroup, $29.624 for Wells Fargo; 70% of initial levels
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| Strike date: | July 8
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| Pricing date: | July 13
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| Settlement date: | July 16
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.6%
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| Cusip: | 40439JGC3
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