Published on 2/14/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $797,000 contingent income barrier autocalls on Tesla, Roku, Zillow
By William Gullotti
Buffalo, N.Y., Feb. 14 – HSBC USA Inc. priced $797,000 of autocallable contingent income barrier notes due Sept. 9, 2024 linked to the least performing of the stocks of Tesla, Inc., Roku, Inc. and Zillow Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 25.32% if each stock closes at or above its coupon trigger level, 60% 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 after six months.
If the notes are not called and each stock finishes at or above its coupon trigger, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon trigger but at or above the 50% barrier value, the payout at maturity will be par. 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 stocks: | Tesla, Inc., Roku, Inc., Zillow Group, Inc.
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Amount: | $1,000,000
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Maturity: | Sept. 9 2024
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Coupon: | 25.32% per year, payable monthly 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 coupon trigger level, par plus final coupon; if the worst performer finishes below coupon trigger level but not below barrier level, par; otherwise, full exposure to decline of worst performer 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 after six months
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Initial levels: | $733.57 for Tesla, $342.27 for Roku, $97.56 for Zillow
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Coupon triggers: | $440.142 for Tesla, $205.362 for Roku, $58.536 for Zillow; 60% of initial levels
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Barrier levels: | $366.785 for Tesla, $171.135 for Roku, $48.78 for Zillow; 50% of initial levels
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Pricing date: | Sept. 3, 2021
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Settlement date: | Sept. 9, 2021
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.25%
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Cusip: | 40439JKV6
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