Published on 6/16/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $438,000 autocallable contingent income barrier notes on three stocks
Chicago, June 16 – HSBC USA Inc. priced $438,000 of autocallable contingent income barrier notes due Dec. 9, 2024 linked to the least performing of the common stocks of Walt Disney Co., Amazon.com, Inc. and Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.75% if each stock closes at or above its coupon barrier level, 60% 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. Otherwise, investors will be fully exposed to the losses 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
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| Underlying stocks: | Walt Disney Co., Amazon.com, Inc. and Citigroup Inc.
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| Amount: | $438,000
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| Maturity: | Dec. 9, 2024
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| Coupon: | 8.75% annual rate, payable quarterly 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
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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: | $146.22 for Disney, $3,389.79 for Amazon, $62.76 for Citigroup
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| Coupon barrier levels: | $87.732 for Disney, $2,033.874 for Amazon, $37.656 for Citigroup, 60% of initial prices
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| Barrier levels: | $87.732 for Disney, $2,033.874 for Amazon, $37.656 for Citigroup, 60% of initial prices
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| Pricing date: | Dec. 3, 2021
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| Settlement date: | Dec. 8, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.6%
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| Cusip: | 40439JUY9
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