Published on 11/1/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $180,000 autocallable contingent income barrier notes on Nasdaq, Russell
Chicago, Nov. 1 – HSBC USA Inc. priced $180,000 of autocallable contingent income barrier notes due March 31, 2026 linked to the least performing of the Nasdaq 100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a contingent coupon at an annual rate of 6.95% if each index closes at or above its trigger level, 80% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly call observation date after one year.
The payout at maturity will be par plus the final coupon unless any index finishes below its 80% barrier level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes with memory interest
|
| Underlying indexes: | Nasdaq-100 and Russell 2000
|
| Amount: | $180,000
|
| Maturity: | March 31, 2026
|
| Coupon: | 6.95%, payable monthly if each index closes at or above trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier level, par; otherwise, exposure to decline of worst-performing index
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
|
| Initial level: | 12,979.12 for Nasdaq, 2,221.482 for Russell
|
| Trigger/barrier levels: | 10,383.296 for Nasdaq, 1,777.1856 for Russell, 80% of initial levels
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40438C2L4
|
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