Published on 4/4/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.76 million autocallable contingent income barrier notes on three stocks
By Kiku Steinfeld
Chicago, April 4 – HSBC USA Inc. priced $1.76 million of autocallable contingent income barrier notes due Sept. 29, 2023 linked to the common stocks of Nvidia Corp., Citigroup Inc. and Pioneer Natural Resources Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 21.9% if each stock closes at or above its coupon barrier level, 70% of the initial level, on the determination date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date after six months.
If the notes are not called and each stock finishes at or above its 70% 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 or cash at the issuer’s option.
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: | Nvidia Corp., Citigroup Inc. and Pioneer Natural Resources Co.
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| Amount: | $1.76 million
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| Maturity: | Sept. 29, 2023
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| Coupon: | 21.9%, payable quarterly if each stock closes at or above coupon barrier level on determination date for that quarter
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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 or cash at the issuer’s option
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| Call: | Automatically at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date after six months
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| Initial levels: | $220.81 for Nvidia, $71.18 for Citi, $162.03 for Pioneer
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| Coupon barrier levels: | $154.567 for Nvidia, $49.826 for Citi, $113.421 for Pioneer, 70% of initial prices
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| Trigger levels: | $154.567 for Nvidia, $49.826 for Citi, $113.421 for Pioneer, 70% of initial prices
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| Pricing date: | Sept. 24, 2021
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| Settlement date: | Sept. 29, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40428HRA2
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