Published on 7/12/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $15.34 million autocallable contingent income barrier notes on four stocks
By William Gullotti
Buffalo, N.Y., July 12 – HSBC USA Inc. priced $15.34 million of autocallable contingent income barrier notes due July 12, 2023 linked to the least performing of the stocks of Walmart Inc., Costco Wholesale Corp., Amazon.com, Inc. and Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 11.5% if each stock closes at or above its coupon trigger level, 70% 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 monthly call observation date after three months.
If the notes are not called and each stock finishes at or above its 70% barrier value, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the least-performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Walmart Inc., Costco Wholesale Corp., Amazon.com, Inc., Target Corp.
|
| Amount: | $15,338,000
|
| Maturity: | July 12, 2023
|
| Coupon: | 11.5% per year, payable monthly 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 final coupon; otherwise, full exposure to decline of least-performing stock from its initial level
|
| Call: | At par plus coupon if each stock closes at or above initial level on any monthly call observation date after three months
|
| Initial levels: | $139.71 for Walmart, $404.68 for Costco, $3,696.58 for Amazon, $247.55 for Target
|
| Coupon triggers: | $97.797 for Walmart, $283.276 for Costco, $2,587.606 for Amazon, $173.285 for Target; 70% of initial levels
|
| Barrier levels: | $97.797 for Walmart, $283.276 for Costco, $2,587.606 for Amazon, $173.285 for Target; 70% of initial levels
|
| Pricing date: | July 7
|
| Settlement date: | July 12
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.6%
|
| Cusip: | 40439JFN0
|
|
|
© 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.
