Published on 6/30/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $21 million autocallable contingent income barrier notes on indexes, ETF
By William Gullotti
Buffalo, N.Y., June 30 – HSBC USA Inc. priced $21 million of autocallable contingent income barrier notes due June 28, 2023 linked to the least performance of the SPDR S&P Regional Banking ETF, the Dow Jones industrial average and Nasdaq-100 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 10.05% if each underlier closes at or above its coupon trigger level, 75% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each underlier closes at or above its initial level on any quarterly call observation date.
If the notes are not called and each underlier 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 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: | Dow Jones industrial average, Nasdaq-100 index, SPDR S&P Regional Banking ETF
|
| Amount: | $21 million
|
| Maturity: | June 28, 2023
|
| Coupon: | 10.05% per year, payable quarterly if each underlier closes at or above coupon trigger on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each underlier finishes at or above barrier level, par plus any final coupon; otherwise, full exposure to decline of worst performer from initial level
|
| Call: | At par plus coupon if each underlier closes at or above initial level on any quarterly call observation date
|
| Initial levels: | $67.64 for ETF, 34,433.84 for Dow, 14,345.18 for Nasdaq
|
| Coupon triggers: | $50.73 for ETF, 25,825.38 for Dow, 10,758.885 for Nasdaq; 75% of initial levels
|
| Barrier levels: | $50.73 for ETF, 25,825.38 for Dow, 10,758.885 for Nasdaq; 75% of initial levels
|
| Pricing date: | June 25
|
| Settlement date: | July 1
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40439JEA9
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
