Published on 6/13/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $810,000 autocallable contingent income barrier notes on Plug Power
Chicago, June 13 – HSBC USA Inc. priced $810,000 of autocallable contingent income barrier notes with memory coupon due June 2, 2023 linked to the common stock of Plug Power, 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 10.66% if the stock closes at or above its coupon trigger level, 70% of the initial level, on the observation date for that period. Previously unpaid coupons will also be paid.
The notes will be called at par plus the coupon if the stock closes at or above 80% of its initial share price on any monthly call observation date after three months.
If the notes are not called and the stock finishes at or above its 55% barrier level, the payout at maturity will be par plus any final coupon. Otherwise, investors will lose 1% for each 1% decline of the stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying stock: | Plug Power, Inc.
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| Amount: | $810,000
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| Maturity: | June 2, 2023
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| Coupon: | 10.66% annual rate, payable monthly if the stock closes at or above coupon trigger level on observation date for that period; previously unpaid coupons will also be paid
|
| Price: | Par
|
| Payout at maturity: | If the stock finishes at or above barrier level, par plus any final coupon; otherwise, 1% loss for each 1% decline of the stock from initial level
|
| Call: | At par plus coupon if the stock closes at or above 80% of its initial price on any monthly call observation date after three months
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| Initial level: | $41.62
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| Call threshold: | 80% of initial price
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| Coupon trigger level: | $29.134, 70% of initial price
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| Barrier level: | $22.891, 55% of initial price
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| Pricing date: | Nov. 29, 2021
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| Settlement date: | Dec. 2, 2021
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.875%
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| Cusip: | 40439JTH8
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