Published on 8/23/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4 million contingent income barrier autocalls on three stocks
By William Gullotti
Buffalo, N.Y., Aug. 23 – HSBC USA Inc. priced $4 million of autocallable contingent income barrier notes due June 28, 2024 linked to the least performing of the stocks of Applied Materials, Inc., Workday, Inc. and NIO 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 25.3% if each stock closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each stock closes at or above 90% of its initial level on any quarterly call observation date.
If the notes are not called and each stock finishes at or above its 70% barrier value, the payout at maturity will be par plus the 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: | Autocallable contingent income barrier notes
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| Underlying stocks: | Applied Materials, Inc., Workday, Inc., NIO Inc.
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| Amount: | $4,002,000
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| Maturity: | June 28, 2024
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| Coupon: | 25.3% 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 final coupon; otherwise, full exposure to decline of least-performing stock from its initial level
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| Call: | At par plus coupon if each stock closes at or above 90% of initial level on any quarterly call observation date
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| Initial levels: | $135.50 for Applied, $238.69 for Workday, $45.41 for NIO
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| Coupon triggers: | $94.85 for Applied, $167.083 for Workday, $31.787 for NIO; 70% of initial levels
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| Barrier levels: | $94.85 for Applied, $167.083 for Workday, $31.787 for NIO; 70% of initial levels
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| Pricing date: | June 23
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| Settlement date: | June 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40439JEB7
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