Published on 8/10/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $285,000 autocallable yield notes on stocks
By Kiku Steinfeld
Chicago, Aug. 10 – HSBC USA Inc. priced $285,000 of autocallable yield notes due Jan. 18, 2024 linked to the worst performing of the common stocks of PayPal Holdings, Inc., Crowdstrike Holdings, Inc. and Roku, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at an annual rate of 12%.
The notes will be called at par if each stock closes at or above its initial price on any quarterly observation date after one year.
The payout at maturity will be par unless either stock finishes below its trigger level, 60% of the initial price, in which case investors will receive a number of shares of the worst performing stock equal to $1,000 divided by that stock’s initial price or, at the issuer’s option, the cash value of those shares.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable yield notes
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| Underlying stocks: | PayPal Holdings, Inc., Crowdstrike Holdings, Inc. and Roku, Inc.
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| Amount: | $285,000
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| Maturity: | Jan. 18, 2024
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| Coupon: | 12% per year, payable monthly
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below trigger level, in which case a number of shares of the worst performing stock equal to $1,000 divided by that stock’s initial price or, at issuer’s option, cash value of those shares
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| Call: | Automatically if each stock closes at or above initial level on any quarterly observation date after one year
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| Initial prices: | $187.20 for PayPal, $187.97 for Crowdstrike, $177.44 for Roku
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| Trigger levels: | $112.32 for PayPal, $112.782 for Crowdstrike, $106.464 for Roku; 60% of initial levels
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 18
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40428HRT1
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