Published on 7/23/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.36 million autocallable contingent income barrier notes on three stocks
By Kiku Steinfeld
Chicago, July 23 – HSBC USA Inc. priced $1.36 million of autocallable contingent income barrier notes due May 31, 2023 linked to the least performing of the stocks of Zillow Group, Inc., CVS Health Corp. and Twilio 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 28.75% 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 its initial level on any quarterly call observation date after six months.
The payout at maturity will be par unless any stock finishes below 70% of its initial value, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Autocallable contingent income barrier notes
|
Underlying stocks: | Zillow Group, Inc., CVS Health Corp. and Twilio Inc.
|
Amount: | $1.36 million
|
Maturity: | May 31, 2023
|
Coupon: | 28.75% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
|
Price: | Par
|
Payout at maturity: | Par plus unless any stock finishes below barrier, in which case investors will receive a number of shares of least performing stock equal to $1,000 divided by initial price or, at issuer’s option, cash equivalent
|
Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
|
Initial levels: | $199.85 for Zillow, $86.44 for CVS, $336.00 for Twilio
|
Coupon triggers: | $82.803 for Zillow, $60.508 for CVS, $235.20 for Twilio; 70% of initial levels
|
Barrier levels: | $82.803 for Zillow, $60.508 for CVS, $235.20 for Twilio; 70% of initial levels
|
Pricing date: | May 28
|
Settlement date: | June 3
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 1.75%
|
Cusip: | 40428HQK1
|
|
© 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.