Published on 7/2/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $512,000 autocallable contingent income barrier notes on three stocks
By Kiku Steinfeld
Chicago, July 5 – HSBC USA Inc. priced $512,000 of autocallable contingent income barrier notes due Dec. 30, 2024 linked to the least performing of the common stocks of United Parcel Service, Inc., Apple Inc. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 6.65% 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 50% 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.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | United Parcel Service, Inc., Apple Inc. and Wells Fargo & Co.
|
| Amount: | $512,000
|
| Maturity: | Dec. 30, 2024
|
| Coupon: | 6.65% annual rate, payable quarterly if each stock closes at or above coupon barrier level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of worst performing stock
|
| 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
|
| Initial levels: | $212.19 for UPS, $176.28 for Apple, $48.36 for Wells
|
| Coupon barrier levels: | $127.314 for UPS, $105.768 for Apple, $29.016 for Wells, 60% of initial prices
|
| Barrier levels: | $106.095 for UPS, $88.14 for Apple, $24.18 for Wells, 50% of initial prices
|
| Pricing date: | Dec. 23, 2021
|
| Settlement date: | Dec. 29, 2021
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40439JVN2
|
|
|
© 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.
