Published on 1/15/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $270,000 million callable contingent income barrier notes on stocks
By Kiku Steinfeld
Chicago, Jan. 17 – HSBC USA Inc. priced $270,000 of callable contingent income barrier notes due Dec. 22, 2025 linked to the performance of Paypal Holdings, Inc., Meta Platforms, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.18% if each stock closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly call observation date.
The payout at maturity will be par plus the final coupon if each stock finishes above its coupon trigger level.
If any stock lags below the coupon trigger level but every stock finishes at or above its 50% barrier level, the payout at maturity will be par. 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
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| Underlying stocks: | Paypal Holdings, Inc., Meta Platforms, Inc. and JPMorgan Chase & Co.
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| Amount: | $270,000
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| Maturity: | Dec. 22, 2025
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| Coupon: | 11.18%, payable quarterly if each stock closes at or above coupon trigger 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 coupon trigger level, par plus the final coupon; if any stock falls below coupon trigger level but each stock finishes at or above barrier level, par; 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 quarterly call observation date
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| Initial level: | $186.20 for Paypal, $333.79 for Meta, $156.76 for JPMorgan
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| Coupon trigger levels: | $111.72 for Paypal, $200.274 for Meta, $94.056 for JPMorgan; 60% of initial levels
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| Barrier levels: | $93.10 for Paypal, $166.895 for Meta, $78.38 for JPMorgan; 50% of initial levels
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| Pricing date: | Dec. 17
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| Settlement date: | Dec. 22
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40439JVJ1
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