Published on 1/31/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.62 million contingent income barrier autocalls on three tech stocks
By William Gullotti
Buffalo, N.Y., Jan. 31 – HSBC USA Inc. priced $1.62 million of autocallable contingent income barrier notes due Sept. 5, 2023 linked to the least performing of the stocks of Facebook, Inc., Adobe Inc. and Micron Technology, 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 16% 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.
If the notes are not called and each stock finishes at or above its 70% barrier value, the payout at maturity will be par plus the final coupon.
Otherwise, investors will receive a number of shares of the worst performer equal to $1,000 divided by that stock’s initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Facebook, Inc., Adobe Inc., Micron Technology, Inc.
|
| Amount: | $1,622,000
|
| Maturity: | Sept. 5, 2023
|
| Coupon: | 16% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
|
| Price: | Par
|
| 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 the worst performer equal to $1,000 divided by that stock’s initial share price
|
| 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: | $379.38 for Facebook, $663.70 for Adobe, $73.70 for Micron
|
| Coupon triggers: | $265.566 for Facebook, $464.59 for Adobe, $51.59 for Micron; 70% of initial levels
|
| Barrier levels: | $265.566 for Facebook, $464.59 for Adobe, $51.59 for Micron; 70% of initial levels
|
| Pricing date: | Aug. 31
|
| Settlement date: | Sept. 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40428HQW5
|
|
|
© 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.
