Published on 8/23/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.38 million contingent income barrier autocalls on Apple, Amazon
By William Gullotti
Buffalo, N.Y., Aug. 23 – HSBC USA Inc. priced $1.38 million of autocallable contingent income barrier notes due June 28, 2024 linked to the least performing of the stocks of Apple Inc. and Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11.4% if each stock closes at or above its coupon trigger level, 75% 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.
If the notes are not called and each stock finishes at or above its 75% 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.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying stocks: | Apple Inc., Amazon.com, Inc.
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Amount: | $1,384,000
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Maturity: | June 28, 2024
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Coupon: | 11.4% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
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Price: | Par
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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
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Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date
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Initial levels: | $133.70 for Apple, $3,503.82 for Amazon
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Coupon triggers: | $100.275 for Apple, $2,627.865 for Amazon; 75% of initial levels
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Barrier levels: | $100.275 for Apple, $2,627.865 for Amazon; 75% of initial levels
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Pricing date: | June 23
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Settlement date: | June 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40439JDY8
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