Published on 10/19/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million callable contingent income barrier notes on three stocks
By Wendy Van Sickle
Columbus, Ohio, Oct. 19 – HSBC USA Inc. priced $1 million of callable contingent income barrier notes with memory coupon due Oct. 21, 2024 linked to the performance of Halliburton Co., Alphabet Inc. and Nvidia Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 27% if each stock closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period, plus any previously unpaid coupon.
The notes will be callable at par plus any coupon due on any monthly call observation date after three months.
The payout at maturity will be par plus the final coupon, if any, if each stock finishes at or above its 50% trigger level. Otherwise, investors will be fully exposed to the decline of the lowest performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes with memory coupon
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| Underlying stocks: | Halliburton Co., Alphabet Inc. and Nvidia Corp.
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| Amount: | $1 million
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| Maturity: | Oct. 21, 2024
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| Coupon: | 27%, payable monthly if each stock closes at or above coupon trigger level on determination date for that period, plus any previously unpaid coupon
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par plus any final coupon; otherwise, exposure to decline of worst-performing stock from its initial level
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| Call option: | At par plus any coupon due on any monthly call observation date after three months
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| Initial level: | $29.41 for Halliburton, $97.18 for Alphabet, $112.27 for Nvidia
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| Coupon trigger levels: | $17.646 for Halliburton, $58.308 for Alphabet, $67.362 for Nvidia; 60% of initial levels
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| Trigger levels: | $14.705 for Halliburton, $48.59 for Alphabet, $56.135 for Nvidia; 50% of initial levels
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| Pricing date: | Oct. 14
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| Settlement date: | Oct. 19
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40441XPV6
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