Published on 5/31/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $210,000 callable notes with contingent return on Delta
Chicago, May 31 – HSBC USA Inc. priced $210,000 of callable notes with contingent return due Nov. 16, 2023 linked to the performance of Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11% if the stock closes at or above the 75% coupon trigger level on the related observation date.
HSBC may call the notes at par on any quarterly coupon payment date.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 75% barrier level, in which case investors will be exposed to the losses of the stock, payable in shares.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable notes with contingent return
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Underlying stock: | Delta Air Lines, Inc.
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Amount: | $210,000
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Maturity: | Nov. 16, 2023
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Coupon: | 11% annual rate, payable quarterly if each asset closes at or above coupon trigger on related observation date
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Price: | Par
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Payout at maturity: | Par plus contingent coupon unless the stock finishes below barrier value, in which case investors will be exposed to the losses of the stock, payable in shares
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Call option: | At par on any quarterly coupon payment date
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Initial level: | $42.22
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Coupon trigger: | $31.665; 75% of initial value
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Barrier value: | $31.665; 75% of initial value
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Pricing date: | Nov. 12, 2021
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Settlement date: | Nov. 17, 2021
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.75%
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Cusip: | 40428HRE4
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