Published on 5/11/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.25 million autocallable contingent income barrier notes on three stocks
Chicago, May 11 – HSBC USA Inc. priced $1.25 million of autocallable contingent income barrier notes due Oct. 7, 2024 linked to the least performing of the common stocks of Tesla, Inc., Apple Inc. and Alphabet 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 16.3% 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 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 60% trigger level, the payout at maturity will be par plus any coupon due. 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: | Tesla, Inc., Apple Inc. and Alphabet Inc.
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| Amount: | $1,249,000
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| Maturity: | Oct. 7, 2024
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| Coupon: | 16.3% 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 its initial price on any quarterly observation date after six months
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| Initial levels: | $775.22 for Tesla, $142.65 for Apple, $2,729.25 for Alphabet
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| Coupon barrier levels: | $542.654 for Tesla, $99.855 for Apple, $1,910.475 for Alphabet, 70% of initial prices
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| Barrier levels: | $465.132 for Tesla, $85.59 for Apple, $1,637.55 for Alphabet, 60% of initial prices
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| Pricing date: | Oct. 1, 2021
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| Settlement date: | Oct. 6, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40439JPJ8
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