Published on 5/11/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.01 million autocallable contingent income barrier notes on three stocks
Chicago, May 11 – HSBC USA Inc. priced $1.01 million of autocallable contingent income barrier notes due April 4, 2023 linked to the least performing of the common stocks of Goldman Sachs Group, Inc., Bank of America Corp. and Advanced Micro Devices, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 13% if each stock closes at or above its coupon barrier level, 70% of the initial level, on the determination date for that period.
The notes will be called at par plus the coupon if each stock closes at or above 90% of its initial price on any quarterly observation date after six months.
If the notes are not called and each stock finishes at or above its 70% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the losses of the least performing stock, payable in shares of the worst performer.
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: | Goldman Sachs Group, Inc., Bank of America Corp. and Advanced Micro Devices, Inc.
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| Amount: | $1,013,000
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| Maturity: | April 4, 2023
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| Coupon: | 13% annual rate, payable monthly if each stock closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of worst performing stock payable in shares of worst performer
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| Call: | Automatically at par plus the coupon if each stock closes at or above 90% of its initial price on any quarterly observation date after six months
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| Initial levels: | $384.89 for Goldman, $43.07 for BofA, $100.35 for Advanced Micro
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| Coupon barrier levels: | $269.423 for Goldman, $30.149 for BofA, $70.245 for Advanced Micro, 70% of initial prices
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| Trigger levels: | $269.423 for Goldman, $30.149 for BofA, $70.245 for Advanced Micro, 70% of initial prices
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| Pricing date: | Sept. 29, 2021
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| Settlement date: | Oct. 4, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40428HRB0
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