Published on 10/25/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.2 million autocallable contingent income barrier notes on three stocks
Chicago, Oct. 25 – HSBC USA Inc. priced $1.2 million of autocallable contingent income barrier notes due Feb. 24, 2025 linked to the least performing of the common stocks of Advanced Micro Devices, Inc., Bank of America Corp. and Costco Wholesale Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 15.5% if each stock closes at or above its coupon barrier level, 60% of the initial level, on the determination date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any monthly observation date after three months.
If the notes are not called and each stock finishes at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the losses of the least performing stock, payable in shares of the worst performer.
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: | Advanced Micro Devices, Inc., Bank of America Corp. and Costco Wholesale Corp.
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| Amount: | $1,197,000
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| Maturity: | Feb. 24, 2025
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| Coupon: | 15.5% annual rate, payable monthly if each stock closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of worst performing stock payable in shares of worst performer
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| Call: | Automatically at par plus the coupon if each stock closes at or above its initial price on any monthly observation date after three months
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| Initial levels: | $117.69 for AMD, $47.68 for BofA, $512.40 for Costco
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| Coupon barrier levels: | $70.614 for AMD, $28.608 for BofA, $307.44 for Costco, 60% of initial levels
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| Barrier levels: | $70.614 for AMD, $28.608 for BofA, $307.44 for Costco, 60% of initial levels
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| Pricing date: | Feb. 16
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| Settlement date: | Feb. 22
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.3%
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| Cusip: | 40428HSA1
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