Published on 5/10/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.53 million autocallable contingent income barrier notes on three stocks
Chicago, May 10 – HSBC USA Inc. priced $1.53 million of autocallable contingent income barrier notes due Oct. 7, 2024 linked to the least performing of the common stocks of Apple Inc., Amazon.com, Inc. and Morgan Stanley, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11.8% if each stock closes at or above its coupon barrier level, 65% of the initial level, on the determination date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date.
If the notes are not called and each stock finishes at or above its 65% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the losses 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: | Apple Inc., Amazon.com, Inc. and Morgan Stanley
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Amount: | $1,526,000
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Maturity: | Oct. 7, 2024
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Coupon: | 11.8% annual rate, payable quarterly if each stock closes at or above coupon barrier level on determination date for that quarter
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Price: | Par
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Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of worst performing stock
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Call: | Automatically at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date
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Initial levels: | $141.50 for Apple, $3,285.04 for Amazon, $97.31 for Morgan Stanley
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Coupon barrier levels: | $91.975 for Apple, $2,135.276 for Amazon, $63.2515 for Morgan Stanley, 65% of initial prices
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Trigger levels: | $91.975 for Apple, $2,135.276 for Amazon, $63.2515 for Morgan Stanley, 65% of initial prices
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Pricing date: | Sept. 30, 2021
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Settlement date: | Oct. 5, 2021
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40439JNF8
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