Published on 5/6/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $760,000 autocallable barrier notes with step-up premium on stocks
By Emma Trincal
New York, May 6 – HSBC USA Inc. priced $760,000 of 0% autocallable barrier notes with step-up premium due May 6, 2024 linked to the least performing of the stocks of Delta Air Lines, Inc., Zoom Video Communications, Inc. and Citigroup 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 87% of its initial level on any quarterly observation date. The premium is 18% per year.
If the notes are not called, meaning all stocks have finished below 87% 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: | Delta Air Lines, Inc., Zoom Video Communications, Inc. and Citigroup Inc.
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Amount: | $760,000
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Maturity: | May 6, 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 87% of its initial level on any quarterly observation date; premium is 18% per year
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Initial stock levels: | $46.57 for Delta, $313.92 for Zoom, $71.71 for Citigroup
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Barrier levels: | $30.2705 for Delta, $204.048 for Zoom and $46.6115 for Citigroup; 65% of initial levels
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Pricing date: | May 3
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Settlement date: | May 6
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 4%
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Cusip: | 40439JAK1
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