Published on 1/19/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.52 million autocallable contingent income barrier notes on stocks
By Wendy Van Sickle
Columbus, Ohio, Jan. 19 – HSBC USA Inc. priced $1.52 million of autocallable contingent income barrier notes due Aug. 30, 2024 linked to the least performing of the common stocks of ViacomCBS Inc., Starbucks Corp. and American Express Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 12.85% if each stock closes at or above its coupon trigger level, 60% of the initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above its initial share price on any quarterly call observation date.
If the notes are not called and each stock finishes at or above its 60% barrier level, the payout at maturity will be par plus the 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: | ViacomCBS Inc., Starbucks Corp., American Express Co.
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Amount: | $1,517,000
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Maturity: | Aug. 30, 2024
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Coupon: | 12.85%, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter
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Price: | Par
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Payout at maturity: | If each stock finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
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Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date
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Initial levels: | $115.57 for Starbucks, $40.97 for ViacomCBS and $166.18 for American Express
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Coupon trigger levels: | $75.1205 for Starbucks, $26.6305 for ViacomCBS and $108.017 for American Express; 60% of initial prices
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Barrier levels: | $75.1205 for Starbucks, $26.6305 for ViacomCBS and $108.017 for American Express; 60% of initial prices
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Pricing date: | Aug. 25
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Settlement date: | Aug. 30
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40439JJW6
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