Published on 5/16/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $526,000 callable contingent income barrier notes on four stocks
By William Gullotti
Buffalo, N.Y., May 16 – HSBC USA Inc. priced $526,000 of callable contingent income barrier notes due Oct. 7, 2024 linked to the performance of Gilead Sciences, Inc., Pfizer Inc., Alphabet Inc. and the International Business Machines Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.55% if each stock closes at or above its trigger level, 60% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its 60% trigger level. Otherwise, investors will be fully exposed to the decline of the lowest performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Callable contingent income barrier notes
|
Underlying stocks: | Gilead Sciences, Inc., Pfizer Inc., Alphabet Inc., International Business Machines Corp.
|
Amount: | $526,000
|
Maturity: | Oct. 7, 2024
|
Coupon: | 10.55%, payable quarterly if each stock closes at or above trigger level on determination date for that period
|
Price: | Par
|
Payout at maturity: | If each stock finishes at or above trigger level, par plus the final coupon; otherwise, exposure to decline of worst-performing stock from its initial level
|
Call option: | At par plus any coupon due on any quarterly call observation date after six months
|
Initial level: | $67.56 for Gilead, $42.42 for Pfizer, $2,673.19 for Alphabet, $144.11 for IBM
|
Trigger levels: | $40.536 for Gilead, $25.452 for Pfizer, $1,603.914 for Alphabet, $86.466 for IBM; 60% of initial levels
|
Pricing date: | Oct. 4, 2021
|
Settlement date: | Oct. 7, 2021
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 2.35%
|
Cusip: | 40439JPT6
|
|
© 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.