Published on 7/7/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $450,000 callable contingent income barrier notes with memory coupon on stocks
By Wendy Van Sickle
Columbus, Ohio, July 7 – HSBC USA Inc. priced $450,000 of callable contingent income barrier notes with memory interest due June 29, 2022 linked to the least performing of the common stocks of Walt Disney Co., Booking Holdings Inc. and TJX Cos., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11.4% if each stock closes at or above its coupon trigger level, 75% of its initial level, on the observation date for that period.
The notes will be callable at par on any quarterly call observation date.
If the notes are not called and each stock finishes at or above its 75% barrier value, the payout at maturity will be par plus any final coupon. Otherwise, investors will be fully exposed to the decline of the least-performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes with memory interest
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| Underlying stocks: | Walt Disney Co., Booking Holdings Inc. and TJX Cos., Inc.
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| Amount: | $450,000
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| Maturity: | June 29, 2022
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| Coupon: | 11.4% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus any final coupon; otherwise, full exposure to decline of least-performing stock
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| Call option: | At par on any quarterly call observation date
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| Initial levels: | $177.93 for Disney, $2,246.23 for Booking, $66.97 for TJX
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| Coupon triggers: | $133.4475 for Disney, $1,684.6725 for Booking, $50.2275 for TJX, 75% of initial levels
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| Barrier levels: | $133.4475 for Disney, $1,684.6725 for Booking, $50.2275 for TJX, 75% of initial levels
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| Pricing date: | June 24
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| Settlement date: | June 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40439JEC5
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