Published on 10/26/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $291,000 autocallable barrier notes with step-up premium on four stocks
Chicago, Oct. 26 – HSBC USA Inc. priced $291,000 of 0% autocallable barrier notes with step-up premium due March 2, 2026 linked to the least performing of the stocks of Block, Inc., Shopify Inc., Advanced Micro Devices, Inc. and Roku, 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 stock closes at or above 80% of its initial level on any semiannual observation date starting after one year. The premium is 40.25% per year.
If the notes are not called, meaning all stocks have finished below 80% of their initial levels, the payout will be par unless any stock has finished below its 50% barrier level, in which case 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 barrier notes with step-up premium
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| Underlying stocks: | Block, Inc., Shopify Inc., Advanced Micro Devices, Inc. and Roku, Inc.
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| Amount: | $291,000
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| Maturity: | March 2, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called because all stocks close below 80% of initial levels, par unless any stock has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing stock from its initial level
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| Call: | At par plus a call premium if each stock closes at or above 80% of its initial level on any semiannual observation date after one year; premium is 40.25% per year
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| Initial stock levels: | $119.82 for Block, $676.95 for Shopify, $121.06 for AMD, $139.61 for Roku
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| Barrier levels: | $59.91 for Block, $338.475 for Shopify, $60.53 for AMD, $69.805 for Roku; 50% of initial levels
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| Pricing date: | Feb. 25
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| Settlement date: | March 2
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40439JD28
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