Published on 3/16/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $700,000 contingent income barrier autocalls with memory on three stocks
By Kiku Steinfeld
Chicago, March 16 – HSBC USA Inc. priced $700,000 of autocallable contingent income barrier notes with memory coupon due Sept. 14, 2022 linked to the least performing of the common stocks of United Continental Holdings Inc., Airbnb, Inc. and Norwegian Cruise Line Holdings Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 22.6% if each stock closes at or above its coupon trigger level, 65% of its initial level, on the observation date for that period. Any previously unpaid coupons will also be paid.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial level on any quarterly call observation date.
If the notes are not called and each stock finishes at or above its 65% 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.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying stocks: | United Continental Holdings Inc., Airbnb, Inc. and Norwegian Cruise Line Holdings Ltd.
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| Amount: | $700,000
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| Maturity: | Sept. 14, 2022
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| Coupon: | 22.6% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period; coupon payments will also include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par; otherwise, full exposure to decline of least-performing stock from its initial level
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| Call: | At par if each stock closes at or above initial level on any quarterly call observation date
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| Initial levels: | $46.58 for United, $166 for Airbnb, $24.94 for Norwegian
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| Coupon triggers: | $30.277 for United, $107.90 for Airbnb, $16.211 for Norwegian; 65% of initial levels
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| Barrier levels: | $30.277 for United, $107.90 for Airbnb, $16.211 Norwegian; 65% of initial levels
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| Pricing date: | Sept. 17
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| Settlement date: | Sept. 22
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40439JMJ1
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