Published on 7/13/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.77 million contingent income autocalls on indexes
By Wendy Van Sickle
Columbus, Ohio, July 13 – HSBC USA Inc. priced $6.77 million of autocallable contingent income securities due July 13, 2023 linked to the worst performing of the S&P 500 index, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7.1% if each index closes at or above its coupon barrier, 80% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each index closes above its initial level on any quarterly redemption date.
The payout at maturity will be par unless any index finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is the distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent autocallable income securities
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Nasdaq-100 index
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| Amount: | $6,771,000
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| Maturity: | July 13, 2023
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| Coupon: | 7.1% per year, payable each quarter if each index closes at or above coupon barrier on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If final share price of least performing index is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
|
| Call: | Par plus the contingent coupon if each index closes above its initial level on any quarterly redemption date
|
| Initial levels: | 4,369.55 for S&P, 14,826.09 for Nasdaq, 2,280.005 for Russell
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| Coupon barrier levels: | 3,495.64 for S&P, 11,860.872 for Nasdaq, 1,824.004 for Russell; 80% of initial levels
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| Downside thresholds: | 3,495.64 for S&P, 11,860.872 for Nasdaq, 1,824.004 for Russell; 80% of initial levels
|
| Pricing date: | July 9
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| Settlement date: | July 14
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2%
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| Cusip: | 40439JFR1
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