Published on 7/16/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4 million contingent income autocalls on S&P, Russell, MSCI EAFE ETF
By William Gullotti
Buffalo, N.Y., July 16 – HSBC USA Inc. priced $4 million of contingent income autocallable securities due July 18, 2022 linked to the worst performing of the iShares MSCI EAFE ETF, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 8.65% if each underlier closes at or above its coupon barrier level, 75% of its initial level, on the relevant observation date.
The notes will be automatically called at par plus coupon if each underlier closes at or above initial levels on any quarterly determination date.
If each underlier finishes at or above its 75% downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any underlier is less than its downside threshold level, investors will be fully exposed to the decline of the worst performer from its initial level.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income autocallable securities
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Underlying assets: | iShares MSCI EAFE ETF, Russell 2000 index, S&P 500 index
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Amount: | $4,000,000
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Maturity: | July 18, 2022
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Coupon: | 8.65% per year, payable quarterly if each underlier closes at or above coupon barrier on the relevant observation date
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Price: | Par
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Payout at maturity: | If each underlier finishes at or above downside threshold level, par plus final contingent coupon; if final level of any underlier is less than downside threshold level, full exposure to decline of the worst performer from its initial level
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Call option: | Automatically at par plus coupon on any quarterly determination date if each underlier closes at or above initial levels on the relevant observation date
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Initial levels: | $79.48 for ETF, 4,369.21 for S&P, 2,238.864 for Russell
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Coupon barriers: | $59.61 for ETF, 3,276.908 for S&P, 1,679.148 for Russell; 75% of initial levels
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Downside threshold: | $59.61 for ETF, 3,276.908 for S&P, 1,679.148 for Russell; 75% of initial levels
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Pricing date: | July 13
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Settlement date: | July 20
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Agent: | HSBC Securities (USA) Inc.
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Distribution: | Morgan Stanley Wealth Management
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Fees: | None
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Cusip: | 40439JGD1
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