Published on 3/16/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.66 million autocallable contingent income barrier notes on three stocks
By Kiku Steinfeld
Chicago, March 16 – HSBC USA Inc. priced $1.66 million of autocallable contingent income barrier notes due Sept. 23, 2024 linked to the common stocks of Roku, Inc., Square, Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 20.65% if each stock closes at or above the coupon trigger level, 70% 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 its initial level on any monthly call observation date after one year.
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: | Roku, Inc., Square, Inc. and Microsoft Corp.
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Amount: | $1,664,000
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Maturity: | Sept. 23, 2024
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Coupon: | 20.65% 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
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Call: | At par plus coupon if each stock closes at or above its initial level on any monthly call observation date after one year
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Initial levels: | $324.10 for Roku, $255.79 for Square, $299.87 for Microsoft
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Coupon trigger levels: | $226.87 for Roku, $179.053 for Square, $209.909 for Microsoft; 70% of initial levels
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Barrier levels: | $194.46 for Roku, $153.474 for Square, $179.922 for Microsoft; 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: | 0.25%
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Cusip: | 40439JMT9
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