Published on 10/25/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.26 million contingent income barrier autocalls on three oil stocks
By William Gullotti
Buffalo, N.Y., Oct. 25 – HSBC USA Inc. priced $1.26 million of autocallable contingent income barrier notes due Oct. 24, 2024 linked to the least performing of the stocks of Chevron Corp., Exxon Mobil Corp. and EOG Resources, 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 19.15% if each stock closes at or above its coupon trigger level, 60% 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.
If the notes are not called and each stock finishes at or above its 60% barrier value, the payout at maturity will be par plus the final coupon. Otherwise, investors will receive a number of shares of worst performer equal to $1,000 divided by that stock’s initial level.
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: | Chevron Corp., Exxon Mobil Corp., EOG Resources, Inc.
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| Amount: | $1.26 million
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| Maturity: | Oct. 24, 2024
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| Coupon: | 19.15% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus final coupon; otherwise, investors will receive a number of shares of worst performer equal to $1,000 divided by that stock’s initial level
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| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | $168.00 for Chevron, $103.79 for Exxon Mobil, $130.07 for EOG
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| Coupon triggers: | $100.80 for Chevron, $62.274 for Exxon Mobil, $78.042 for EOG; 60% of initial levels
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| Barrier levels: | $100.80 for Chevron, $62.274 for Exxon Mobil, $78.042 for EOG; 60% of initial levels
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| Pricing date: | Oct. 19
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| Settlement date: | Oct. 24
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40428HUD2
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