Published on 10/18/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.33 million contingent income barrier autocalls on BofA, Apple
By William Gullotti
Buffalo, N.Y., Oct. 18 – HSBC USA Inc. priced $1.33 million of autocallable contingent income barrier notes due Oct. 15, 2024 linked to the least performing of the stocks of Apple Inc. and Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 12.5% if each stock closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its call level, 90% of initial level, on any monthly call observation date after three months.
If the notes are not called and each stock finishes at or above its 60% barrier value, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the least-performing stock from its initial level.
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: | Apple Inc., Bank of America Corp.
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| Amount: | $1,328,000
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| Maturity: | Oct. 15, 2024
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| Coupon: | 12.5% per year, payable monthly if each stock closes at or above coupon trigger on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus final coupon; otherwise, full exposure to decline of least-performing stock from its initial level
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| Call: | At par plus coupon if each stock closes at or above 90% call level on any monthly call observation date after three months
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| Initial levels: | $138.34 for Apple, $29.86 for Bank of America
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| Coupon triggers: | $83.004 for Apple, $17.916 for Bank of America; 60% of initial levels
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| Barrier levels: | $83.004 for Apple, $17.916 for Bank of America; 60% of initial levels
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| Pricing date: | Oct. 12
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| Settlement date: | Oct. 14
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3%
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| Cusip: | 40441XRT9
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