Published on 5/20/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.6 million autocallable barrier notes with step-up premium on tech stocks
By William Gullotti
Buffalo, N.Y., May 20 – HSBC USA Inc. priced $2.6 million of 0% autocallable barrier notes with step-up premium due May 19, 2025 linked to the performance of the stocks of Tesla, Inc., Microsoft Corp. and Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a 36% annualized call premium if each stock closes at or above its call level, 90% of initial level, on any quarterly observation date after six months.
If each stock finishes at or above call level, the payout at maturity will be par plus 108%.
If the worst performer declines below call level but finishes at or above its 50% barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying stocks: | Tesla, Inc., Microsoft Corp., Amazon.com, Inc.
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| Amount: | $2,602,000
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| Maturity: | May 19, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above call level, par plus 108%; if the worst performer finishes below call level but not below barrier level, par; otherwise, investors will lose 1% for each 1% decline of worst performer from its initial level
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| Call: | At par plus 36% annualized call premium if each stock closes at or above 90% of initial level on any quarterly observation date after six months
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| Initial levels: | $724.37 for Tesla, $261.50 for Microsoft, $2,216.21 for Amazon
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| Barrier levels: | $362.185 for Tesla, $130.75 for Microsoft, $1,108.105 for Amazon; 50% of initial levels
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| Pricing date: | May 16
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| Settlement date: | May 19
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.775%
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| Cusip: | 40439J3S2
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