Published on 12/13/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.68 million autocallable contingent income barrier notes on S&P, EM ETF
Chicago, Dec. 13 – HSBC USA Inc. priced $1.68 million of autocallable contingent income barrier notes due April 6, 2026 linked to the least performing of the S&P 500 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Quarterly, the notes will pay a contingent coupon at an annual rate of 8% if each underlier closes at or above its coupon trigger level, 80% of its initial level, on the observation date for that period.
The notes will be automatically called at par on any quarterly call observation date after one year if both assets finish above their initial levels on the related observation date.
The payout at maturity will be par plus any final coupon due unless any underlier finishes below its 60% barrier level, in which case investors will be fully exposed to the decline of the worst performer from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying assets: | S&P 500 index, iShares MSCI Emerging Markets ETF
|
| Amount: | $1,675,000
|
| Maturity: | April 6, 2026
|
| Coupon: | 8% annual rate, payable quarterly if each underlier closes at or above trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each underlier finishes at or above barrier level, par plus any coupon due; otherwise, exposure to decline of worst-performing underlier from its initial level
|
| Call: | Automatically at par plus coupon on any quarterly observation date after one year if both underliers close above their initial levels
|
| Initial level: | 3,972.89 for S&P, $53.34 for ETF
|
| Coupon trigger levels: | 3,178.312 for S&P, $42.672 for ETF; 80% of initial levels
|
| Barrier levels: | 2,383.734 for S&P, $32.004 for ETF; 60% of initial levels
|
| Pricing date: | March 31
|
| Settlement date: | April 6
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40438C5K3
|
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