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.
|
Issue: | Autocallable barrier notes with step-up premium
|
Underlying stocks: | Nucor Corp., Alphabet Inc., Five Below, Inc. and Ulta Beauty, Inc.
|
Amount: | $1 million
|
Maturity: | Sept. 13, 2024
|
Coupon: | 0%
|
Price: | Par
|
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
|
Call: | At par plus 19.15% annualized if each stock closes at or above 90% of its initial level on any quarterly observation date
|
Initial levels: | $182.08 for Five, $112.18 for Nucor, $2,897.67 for Alphabet, $376.30 for Ulta
|
Barrier levels: | $118.352 for Five, $72.917 for Nucor, $1,883.4855 for Alphabet, $244.595 for Ulta; 65% of initial levels
|
Pricing date: | Sept. 8
|
Settlement date: | Sept. 13
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 4%
|
Cusip: | 40428HQY1
|
© 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.