Published on 9/15/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.9 million contingent income callable notes on S&P, Stoxx, Russell
By Wendy Van Sickle
Columbus, Ohio, Sept. 15 – HSBC USA Inc. priced $2.9 million of contingent income callable securities due Sept. 6, 2024 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 9.5% if each index closes at or above its coupon barrier level, 80% of its initial index level, on each day during that quarter.
HSBC may call the notes at par plus any coupon on any quarterly determination date after six months.
If each index finishes at or above its 75% downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | Euro Stoxx 50, Russell 2000, S&P 500
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| Amount: | $2,899,000
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| Maturity: | Sept. 6, 2024
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| Coupon: | 9.5% per year, payable quarterly if each index closes at or above coupon barrier on each day during that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final contingent coupon; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | At par plus any coupon on any quarterly determination date after six months
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| Initial levels: | 4,522.68 for S&P, 4,196.41 for Stoxx, 2,273.774 for Russell
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| Coupon barriers: | 3,618.144 for S&P, 3,357.128 for Stoxx, 1,819.0192 for Russell; 80% of initial levels
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| Downside threshold: | 3,392.01 for S&P, 3,147.3075 for Stoxx, 1,705.3305 for Russell; 75% of initial levels
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 3
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
|
| Cusip: | 40439JKG9
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