Published on 8/11/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.52 million contingent income autocalls on Apple, Citigroup
By William Gullotti
Buffalo, N.Y., Aug. 11 – HSBC USA Inc. priced $3.52 million of autocallable contingent income securities due Aug. 9, 2024 linked to the worst performing of the stocks of Apple Inc. and Citigroup 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% 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 after six months.
The payout at maturity will be par 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 autocallable income securities
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| Underlying stocks: | Apple Inc., Citigroup Inc.
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| Amount: | $3,520,000
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| Maturity: | Aug. 9, 2024
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| Coupon: | 12% 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; 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 after six months
|
| Initial levels: | $146.14 for Apple, $71.07 for Citigroup
|
| Coupon barrier levels: | $53.3025 for Apple, $53.3025 for Citigroup; 75% of initial levels
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| Downside thresholds: | $53.3025 for Apple, $53.3025 for Citigroup; 75% of initial levels
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| Pricing date: | Aug. 6
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| Settlement date: | Aug. 11
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 40439K615
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