Published on 8/3/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $500,000 autocallable contingent income barrier notes on three stocks
By Kiku Steinfeld
Chicago, Aug. 3 – HSBC USA Inc. priced $500,000 of autocallable contingent income barrier notes due Jan. 13, 2025 linked to the stocks of Home Depot, Inc., United States Steel Corp. and Caterpillar 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 8.45% if each stock closes at or above the barrier level, 60% of its initial level, on the determination date for that month.
The notes will be called at par of plus the coupon if each stock closes at or above 90% of the initial price on any monthly observation date after three months.
The payout at maturity will be par unless any stock finishes below the barrier level, in which case investors will be fully exposed to the decline of the least performing stock.
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: | Home Depot, Inc., United States Steel Corp. and Caterpillar Inc.
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| Amount: | $500,000
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| Maturity: | Jan. 13, 2025
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| Coupon: | 8.45% per year, payable monthly if each stock closes at or above barrier level on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below barrier level, in which case full exposure to the decline of the least performing stock
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| Call: | Par if each stock closes at or above 90% of initial price on any monthly observation date after three months
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| Initial levels: | $393.61 for Home Depot, $25.40 for Steel, $224.19 for Caterpillar
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| Barrier levels: | $236.166 for Home Depot, $15.24 for Steel, $134.514 for Caterpillar; 60% of initial prices
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| Pricing date: | Jan. 7, 2022
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| Settlement date: | Jan. 12, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40439JXL4
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