Published on 7/2/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.12 million contingent income barrier autocalls with memory coupon on stocks
By Kiku Steinfeld
Chicago, July 5 – HSBC USA Inc. priced $1.12 million of autocallable contingent income barrier notes with memory coupon due Dec. 30, 2024 linked to the common stocks of Wynn Resorts Ltd., Salesforce.com, Inc. and DocuSign, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon plus any previously unpaid coupons at an annualized rate of 18.85% if each stock closes at or above the coupon trigger level, 70% of the initial level, on the observation date for that month.
The notes will be called at par if each stock closes at or above the initial price on any quarterly observation date after six months.
If the notes are not called and each stock finishes at or above the 60% barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the least-performing stock, payable in shares or cash at the option of the issuer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying stocks: | Wynn Resorts Limited, Salesforce.com, Inc. and DocuSign, Inc.
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| Amount: | $1,116,000
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| Maturity: | Dec. 30, 2024
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| Coupon: | 18.85% plus any previously unpaid coupons, payable monthly if each stock closes at or above coupon trigger level on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above final barrier level, par; otherwise, 1% loss for each 1% decline of least-performing stock, payable in shares or cash at the option of the issuer
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| Call: | At par if each stock closes at or above initial price on any quarterly observation date after six months
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| Initial levels: | $85.87 for Wynn, for $252.80 Salesforce, for $153.85 DocuSign
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| Coupon triggers: | $60.109 for Wynn, $176.96 for Salesforce, $107.695 for DocuSign, 70% of initial prices
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| Final barrier levels: | $51.522 for Wynn, $151.68 for Salesforce, $92.31 for DocuSign, 60% of initial prices
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| Pricing date: | Dec. 22, 2021
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| Settlement date: | Dec. 28, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40428HRN4
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