Published on 2/11/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.4 million contingent income barrier autocalls on Meta, AMD, Micron
By William Gullotti
Buffalo, N.Y., Feb. 11 – HSBC USA Inc. priced $4.4 million of autocallable contingent income barrier notes due Feb. 11, 2025 linked to the least performing of the stocks of Meta Platforms, Inc., Advanced Micro Devices, Inc. and Micron Technology, 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 16.86% 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 called at par plus the coupon if each stock closes at or above its initial level on any quarterly observation date after one year.
If the notes are not called and each stock finishes at or above its coupon trigger level, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon trigger but at or above its 50% barrier value, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the least-performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Meta Platforms, Inc., Advanced Micro Devices, Inc., Micron Technology, Inc.
|
| Amount: | $4.4 million
|
| Maturity: | Feb. 11, 2025
|
| Coupon: | 16.86% per year, payable monthly if each stock closes at or above coupon trigger on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above coupon trigger, par plus final coupon; if the worst performer finishes below coupon trigger but at or above barrier level, par; otherwise, full exposure to decline of least-performing stock from its initial level
|
| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly observation date after one year
|
| Initial levels: | $220.18 for Meta, $128.23 for AMD, $84.12 for Micron
|
| Coupon triggers: | $132.108 for Meta, $76.938 for AMD, $50.472 for Micron; 60% of initial levels
|
| Barrier levels: | $110.09 for Meta, $64.115 for AMD, $42.06 for Micron; 50% of initial levels
|
| Pricing date: | Feb. 8
|
| Settlement date: | Feb. 11
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.75%
|
| Cusip: | 40439JZZ1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
