Published on 9/12/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.57 million autocallable barrier notes with step-up premium on four stocks
By Wendy Van Sickle
Columbus, Ohio, Sept. 12 – HSBC USA Inc. priced $1.57 million of 0% autocallable barrier notes with step-up premium due Sept. 13, 2027 linked to the least performing of the stocks of Microsoft Corp., Alphabet Inc., Apple Inc. and Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each asset closes at or above its initial level on any quarterly observation date after one year. The premium is 24% per year.
If the notes are not called, the payout will be par unless any asset has finished below its 50% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing asset 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 assets: | Microsoft Corp., Alphabet Inc., Apple Inc. and Amazon.com, Inc.
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| Amount: | $1,569,000
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| Maturity: | Sept. 13, 2027
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless either asset has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing asset from its initial level
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| Call: | At par plus a call premium if each asset closes at or above its initial level on any quarterly observation date after one year; premium is 24% per year
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| Initial asset levels: | $258.09 for Microsoft, $109.45 for Alphabet, $155.96 for Apple, $129.48 for Amazon
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| Barrier levels: | $129.045 for Microsoft, $54.725 for Alphabet, $77.98 for Apple, $64.74 for Amazon; 50% of initial levels
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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: | 0.25%
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| Cusip: | 40441XNB2
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