Published on 9/12/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.09 million autocallable contingent income barrier notes on two stocks
By Wendy Van Sickle
Columbus, Ohio, Sept. 12 – HSBC USA Inc. priced $1.09 million of autocallable contingent income barrier notes due Sept. 12, 2025 linked to the least performing of the shares of Advanced Micro Devices, Inc. and Nvidia Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 19% 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 85% of its initial share price on any quarterly call observation date.
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.
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: | Advanced Micro Devices, Inc. and Nvidia Corp.
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| Amount: | $1,094,000
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| Maturity: | Sept. 12, 2025
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| Coupon: | 19% annual rate, payable monthly if each stock closes at or above coupon trigger level on observation date for that period
|
| 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
|
| Call: | At par if each stock closes at or above 85% of initial price on any quarterly call observation date
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| Initial levels: | $79.61 for Advanced Micro, $137.14 for Nvidia
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| Coupon trigger levels: | $47.766 for Advanced Micro, $82.284 for Nvidia, 60% of initial prices
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| Barrier levels: | $47.766 for Advanced Micro, $82.284 for Nvidia, 60% of initial prices
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| Pricing date: | Sept. 7
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| Settlement date: | Sept. 12
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40441XNC0
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