Published on 11/18/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $500,000 autocallable contingent income barrier notes on three stocks
By Wendy Van Sickle
Columbus, Ohio, Nov. 18 – HSBC USA Inc. priced $500,000 of autocallable contingent income barrier notes due Aug. 12, 2024 linked to the stocks of Target Corp., Amazon.com, Inc. and Costco Wholesale Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 7.5% if each stock closes at or above the barrier level, 65% of its initial level, on the determination date for that quarter.
The notes will be called at par of $5,000 plus the coupon if each stock closes at or above the initial price on any quarterly observation date after six months.
The payout at maturity will be par unless any stock finishes below the barrier level, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
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: | Target Corp., Amazon.com, Inc. and Costco Wholesale Corp.
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| Amount: | $500,000
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| Maturity: | Aug. 12, 2024
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| Coupon: | 7.5% per year, payable quarterly if each stock closes at or above barrier level on determination date for that quarter
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| Price: | Par of $5,000
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| Payout at maturity: | Par unless any stock finishes below barrier level, in which case, shares of least performer equal to $1,000 divided by initial price or cash at issuer’s option
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| Call: | Par if each stock closes at or above initial price on any quarterly observation date after six months
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| Initial levels: | $260.53 for Target, $3,354.72 for Amazon and $435.04 for Costco
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| Barrier levels: | $169.3445 for Target, $2,180.568 for Amazon and $282.776 for Costco; 65% of initial prices
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| Pricing date: | Aug. 4
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| Settlement date: | Aug. 10
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.35%
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| Cusip: | 40439JJH9
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