Published on 6/21/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.8 million autocallable contingent income barrier notes on stocks
By Wendy Van Sickle
Columbus, Ohio, June 21 – HSBC USA Inc. priced $3.8 million of autocallable contingent income barrier notes due June 17, 2024 linked to the least performing of the common stocks of Micron Technology, Inc., Western Digital Corp. and Seagate Technology Holdings plc, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 15.25% if each stock closes at or above its coupon trigger level, 60% 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 quarterly call observation date after six months.
If the notes are not called and each stock finishes at or above its 60% barrier value, the payout at maturity will be par plus any 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.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Micron Technology, Inc., Western Digital Corp. and Seagate Technology Holdings plc
|
| Amount: | $3.8 million
|
| Maturity: | June 17, 2024
|
| Coupon: | 15.25% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above barrier level, par plus any final coupon; otherwise, full exposure to decline of least-performing stock
|
| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | $79.34 for Micron, $74.78 for Western, $96.77 for Seagate
|
| Coupon triggers: | $47.604 | for Micron, $44.868 for Western, $58.062 for Seagate, 60% of initial levels
|
| Barrier levels: | $47.604 | for Micron, $44.868 for Western, $58.062 for Seagate, 60% of initial levels
|
| Pricing date: | June 11
|
| Settlement date: | June 16
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.35%
|
| Cusip: | 40439JDJ1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
