Published on 5/27/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $870,000 autocallable barrier notes with step-up premium on three stocks
Chicago, May 27 – HSBC USA Inc. priced $870,000 of 0% autocallable barrier notes with step-up premium due Nov. 15, 2024 linked to the least performing of the stocks of Delta Air Lines, Inc., Citigroup Inc. and Zoom Video Communications, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each stock closes at or above 90% of its initial level on any quarterly observation date. The premium is 19.85% per year.
If the notes are not called, meaning all stocks have finished below 90% of their initial levels, the payout will be par unless any stock has finished below its 65% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying stocks: | Delta Air Lines, Inc., Citigroup Inc. and Zoom Video Communications, Inc.
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| Amount: | $870,000
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| Maturity: | Nov. 15, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called because all stocks close below 90% of initial levels, par unless any stock has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing stock from its initial level
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| Call: | At par plus a call premium if each stock closes at or above 90% of its initial level on any quarterly observation date after one year; premium is 19.85% per year
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| Initial stock levels: | $44.53 for Delta, $67.99 for Citigroup, $258.40 for Zoom
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| Barrier levels: | $28.9445 for Delta, $44.1935 for Citigroup, $167.96 for Zoom; 65% of initial levels
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| Pricing date: | Nov. 9, 2021
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| Settlement date: | Nov. 15, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40439JSA4
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