Published on 11/3/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.76 million contingent income barrier autocalls with memory on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Nov. 3 – HSBC USA Inc. priced $4.76 million of autocallable contingent income barrier notes with memory coupon due May 1, 2023 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 7% if each index closes at or above its coupon trigger level, 80% of its initial level, on the observation date for that period, plus any previously unpaid coupon.
The notes will be called at par plus the coupon if each index closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each index finishes at or above its 80% barrier value, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes with memory coupon
|
| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $4,764,000
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| Maturity: | May 1, 2023
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| Coupon: | 7% per year, payable quarterly if each index closes at or above coupon trigger on observation date for that period, plus any previously unpaid coupon
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier level, par; otherwise, full exposure to decline of least-performing index
|
| Call: | At par plus coupon if each index closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | 4,574.79 for S&P, 2,296.075 for Russell
|
| Coupon triggers: | 3,659.832 for S&P, 1,836.86 for Russell, 80% of initial levels
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| Barrier levels: | 3,659.832 for S&P, 1,836.86 for Russell, 80% of initial levels
|
| Pricing date: | Oct. 26
|
| Settlement date: | Oct. 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.525%
|
| Cusip: | 40439JNX9
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