Published on 6/18/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $11.47 million contingent income autocalls on stocks
By Wendy Van Sickle
Columbus, Ohio, June 18 – HSBC USA Inc. priced $11.47 million of autocallable contingent income securities due June 14, 2024 linked to the worst performing of the stocks of Apple, Inc., Alphabet 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 10.25% if each stock closes at or above its coupon barrier, 70% 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.
The payout at maturity will be par unless any stock finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is the distributor.
Issuer: | HSBC USA Inc.
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Issue: | Contingent autocallable income securities
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Underlying stocks: | Apple, Inc., Alphabet Inc. and Netflix Inc.
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Amount: | $11,469,300
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Maturity: | June 14, 2024
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Coupon: | 10.25% per year, payable each quarter if each stock closes at or above coupon barrier on determination date for that period
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Price: | Par of $10
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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
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Call: | Par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date
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Initial levels: | $127.35 for Apple, $2,430.20 for Alphabet, $488.77 for Netflix
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Coupon barrier levels: | $89.145 for Apple, $1,701.14 for Alphabet, $342.139 for Netflix; 70% of initial levels
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Downside thresholds: | $82.778 for Apple, $1,579.63 for Alphabet, $317.701 for Netflix; 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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Distributor: | Morgan Stanley Smith Barney LLC
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Fees: | 2.5%
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Cusip: | 40439K607
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