Published on 2/26/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million autocallable barrier notes with step-up premium on four stocks
By Kiku Steinfeld
Chicago, Feb. 28 – HSBC USA Inc. priced $1 million of 0% autocallable barrier notes with step-up premium due Sept. 13, 2024 linked to the least performing of the stocks of Nucor Corp., Alphabet Inc., Five Below, Inc. and Ulta Beauty, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a 19.15% annualized call premium if each stock closes at or above 90% of its initial level on any quarterly observation date.
If the notes are not called, the payout will be par unless any stock finishes below its 65% barrier level, in which case investors will lose 1% for each 1% decline 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 barrier notes with step-up premium
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| Underlying stocks: | Nucor Corp., Alphabet Inc., Five Below, Inc. and Ulta Beauty, Inc.
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| Amount: | $1 million
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| Maturity: | Sept. 13, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below barrier level, in which case investors will lose 1% for each 1% decline of least-performing stock, payable in shares or cash at the issuer’s option
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| Call: | At par plus 19.15% annualized if each stock closes at or above 90% of its initial level on any quarterly observation date
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| Initial levels: | $182.08 for Five, $112.18 for Nucor, $2,897.67 for Alphabet, $376.30 for Ulta
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| Barrier levels: | $118.352 for Five, $72.917 for Nucor, $1,883.4855 for Alphabet, $244.595 for Ulta; 65% of initial levels
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 13
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40428HQY1
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