Published on 9/8/2020 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.26 million contingent income barrier autocallables tied to tech stocks
By Kiku Steinfeld
Chicago, Sept. 8 – HSBC USA Inc. priced $2.26 million of autocallable contingent income barrier notes due Sept. 30, 2022 linked to the least performing of the common stocks of Amazon.com, Inc., Facebook, Inc. and Netflix, 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 32% if each stock closes at or above its trigger level, 80% of its initial share price, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger levelin which case investors will lose 1% for each 1% decline of the worst-performing stock 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: | Amazon.com, Inc., Facebook, Inc. and Netflix, Inc.
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| Amount: | $2,257,000
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| Maturity: | Sept. 30, 2022
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| Coupon: | 32%, payable quarterly if each stock closes at or above trigger level on determination date for that period
|
| Call: | At par if each stock finishes above initial level on a quarterly observation date after six months
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, 1% loss for each 1% decline of the worst-performing stock from its initial level
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| Initial level: | $3,401.80 for Amazon.com, $293.66 for Facebook, $523.89 for Netflix
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| Trigger level: | 80% of initial levels
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| Pricing date: | Aug. 28
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| Settlement date: | Sept. 2
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
|
| Cusip: | 40438CTX9
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