Published on 11/18/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million autocallable contingent income barrier notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, Nov. 18 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due Feb. 6, 2023 linked to the least performance of the VanEck Vectors Gold Miners ETF, the S&P 500 index and Russell 2000 index, 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 underlier closes at or above its coupon trigger level, 65% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each underlier closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each underlier finishes at or above its initial level or no underlier ever closes below its 65% barrier value, the payout at maturity will be par plus any final coupon. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
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 assets: | S&P 500 index, Russell 2000 index, VanEck Vectors Gold Miners ETF
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| Amount: | $1 million
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| Maturity: | Feb. 6, 2023
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| Coupon: | 11.4% per year, payable quarterly if each underlier 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 underlier finishes at or above initial level or never closes below barrier level, par plus any final coupon; otherwise, full exposure to decline of worst performer from initial level
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| Call: | At par plus coupon if each underlier closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | $31.86 for ETF, 4,613.67 for S&P, 2,358.121 for Russell
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| Coupon triggers: | $20.709 for ETF, 2,998.8855 for S&P, 1,532.77865 for Russell; 65% of initial levels
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| Barrier levels: | $20.709 for ETF, 2,998.8855 for S&P, 1,532.77865 for Russell; 65% of initial levels
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| Pricing date: | Nov. 1
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| Settlement date: | Nov. 4
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.6%
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| Cusip: | 40439JRW7
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