Published on 12/9/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.5 million contingent income barrier autocalls with memory on two stocks
By Kiku Steinfeld
Chicago, Dec. 9 – HSBC USA Inc. priced $1.5 million of autocallable contingent income barrier notes with memory coupon due Aug. 26, 2024 linked to the least performing of the common stocks of DocuSign, Inc. and RingCentral, 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 12.25% if each stock closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period. Any previously unpaid coupons will also be paid.
The notes will be called at par if each stock closes at or above its initial level on any quarterly call observation date after one year.
If the notes are not called and each stock finishes at or above its 60% barrier value, the payout at maturity will be par. 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 with memory coupon
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| Underlying stocks: | DocuSign, Inc. and RingCentral, Inc.
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| Amount: | $1,504,000
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| Maturity: | Aug. 26, 2024
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| Coupon: | 12.25% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period; previously unpaid coupons will also be paid
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par; otherwise, full exposure to decline of least-performing stock
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| Call: | At par if each stock closes at or above initial level on any quarterly call observation date after one year
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| Initial levels: | $286.00 for DocuSign, $250.88 for RingCentral
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| Coupon triggers: | $171.60 for DocuSign, $150.528 for RingCentral; 60% of initial levels
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| Barrier levels: | $171.60 for DocuSign, $150.528 for RingCentral; 60% of initial levels
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| Pricing date: | Aug. 20
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| Settlement date: | Aug. 25
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40439JJT3
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