Published on 6/30/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $14.41 million contingent income autocalls on three tech stocks
By William Gullotti
Buffalo, N.Y., June 30 – HSBC USA Inc. priced $14.41 million of autocallable contingent income securities due June 28, 2024 linked to the worst performing of the stocks of Apple, Inc., Amazon.com, Inc. and Microsoft Corp., 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 6.05% if each stock closes at or above its coupon barrier, 60% 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 60% 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.
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Issue: | Contingent autocallable income securities
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Underlying stocks: | Apple, Inc., Amazon.com, Inc., Microsoft Corp.
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Amount: | $14,406,500
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Maturity: | June 28, 2024
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Coupon: | 6.05% 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 from its initial level
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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: | $133.11 for Apple, $3,401.46 for Amazon, $265.02 for Microsoft
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Coupon barrier levels: | $79.866 for Apple, $2,040.876 for Amazon, $159.012 for Microsoft; 60% of initial levels
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Downside thresholds: | $79.866 for Apple, $2,040.876 for Amazon, $159.012 for Microsoft; 60% of initial levels
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Pricing date: | June 25
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Settlement date: | June 30
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Agent: | HSBC Securities (USA) Inc.
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Distributor: | Morgan Stanley Wealth Management
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Fees: | 2.5%
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Cusip: | 40439K771
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