Published on 7/11/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $375,000 autocallable contingent income barrier notes on two stocks
By Kiku Steinfeld
Chicago, July 11 – HSBC USA Inc. priced $375,000 of autocallable contingent income barrier notes due Dec. 30, 2022 linked to the least performing of the shares of Penn National Gaming, Inc. and Advanced Micro Devices, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 27.75% if each stock closes at or above its coupon trigger level, 60% of the initial level, on the observation date for that period.
The notes will be called at par if each stock closes at or above its initial share price on any monthly call observation date after three months.
If the notes are not called and each stock finishes at or above its 60% barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the least-performing stock from its initial level, payable in shares or cash at the option of the issuer.
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: | Penn National Gaming, Inc. and Advanced Micro Devices, Inc.
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| Amount: | $375,000
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| Maturity: | Dec. 30, 2022
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| Coupon: | 27.75% annual rate, payable monthly if each stock closes at or above coupon trigger level on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level, payable in shares or cash at the option of the issuer
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| Call: | At par if each stock closes at or above initial price on any monthly call observation date after three months
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| Initial levels: | $50.81 for Penn, $154.36 for AMD
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| Coupon trigger levels: | $30.486 for Penn, $92.616 for AMD, 60% of initial prices
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| Barrier levels: | $30.486 for Penn, $92.616 for AMD, 60% of initial prices
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| Pricing date: | Dec. 27
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| Settlement date: | Dec. 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40428HRM6
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