Published on 8/20/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.4 million autocallable barrier notes with step-up premium on four stocks
By William Gullotti
Buffalo, N.Y., Aug. 20 – HSBC USA Inc. priced $2.4 million of 0% autocallable barrier notes with step-up premium due Aug. 19, 2024 linked to the performance of the stocks of Bank of America Corp., Coca-Cola Co., Eli Lilly & Co. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an 24.2% annualized call premium if each stock closes at or above its call level, 90% of initial level, on any quarterly observation date including the final.
If the notes are not called, the payout at maturity will be par unless any stock finishes below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium
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| Underlying stocks: | Bank of America Corp., Coca-Cola Co., Eli Lilly & Co., Tesla, Inc.
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| Amount: | $2,403,000
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| Maturity: | Aug. 19, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below barrier level, in which case investors will lose 1% for each 1% decline of least-performing stock from its initial level
|
| Call: | At par plus 24.2% annualized premium if each stock closes at or above its call level on any quarterly observation date including the final
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| Initial levels: | $41.29 for BofA, $57.48 for Coke, $269.94 for Eli Lilly, $686.17 for Tesla
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| Call threshold: | 90% of initial levels
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| Barrier levels: | $24.774 for BofA, $34.488 for Coke, $161.964 for Eli Lilly, $411.702 for Tesla; 60% of initial levels
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| Pricing date: | Aug. 16
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| Settlement date: | Aug. 19
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40439JJQ9
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