Published on 3/16/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $966,000 autocallable contingent income barrier notes on three stocks
By Kiku Steinfeld
Chicago, March 16 – HSBC USA Inc. priced $966,000 of autocallable contingent income barrier notes due Sept. 23, 2024 linked to the common stocks of Ford Motor Co., General Motors Co. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 10.5% if each stock closes at or above the coupon trigger level, 60% of its initial level, on the observation date for that month
The notes will be called at par plus the coupon if each stock closes at or above 90% of its initial level on any monthly call observation date after three months.
If the notes are not called and each stock finishes at or above its 60% barrier, the payout at maturity will be par plus any final coupon. Otherwise, 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 contingent income barrier notes
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| Underlying stocks: | Ford Motor Co., General Motors Co. and Tesla, Inc.
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| Amount: | $966,000
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| Maturity: | Sept. 23, 2024
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| Coupon: | 10.5% per year, payable monthly if each stock closes at or above coupon trigger level on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier, par plus any final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
|
| Call: | At par plus coupon if each stock closes at or above 90% of its initial level on any monthly call observation date after three months
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| Initial levels: | $13.55 for Ford, $51.33 for GM, $759.49 for Tesla
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| Coupon trigger levels: | $8.13 for Ford, $30.798 for GM, $455.694 for Tesla; 60% of initial levels
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| Barrier levels: | $8.13 for Ford, $30.798 for GM, $455.694 for Tesla; 60% of initial levels
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| Pricing date: | Sept. 17
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| Settlement date: | Sept. 22
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40439JML6
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