Published on 6/16/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $515,000 callable contingent income barrier notes on three stocks
Chicago, June 16 – HSBC USA Inc. priced $515,000 of callable contingent income barrier notes due Dec. 9, 2024 linked to the performance of salesforce.com, Inc., Visa 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 annual rate of 14.25% if each stock closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its 70% trigger level. Otherwise, investors will be fully exposed to the decline of the lowest performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying stocks: | salesforce.com, Inc., Visa Inc. and Citigroup Inc.
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| Amount: | $515,000
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| Maturity: | Dec. 9, 2024
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| Coupon: | 14.25%, payable quarterly if each stock closes at or above trigger level on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par plus the final coupon; otherwise, exposure to decline of worst-performing stock from its initial level
|
| Call option: | At par plus any coupon due on any quarterly call observation date after six months
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| Initial level: | $258.75 for salesforce, $202.68 for Visa, $62.52 for Citigroup
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| Trigger levels: | $181.125 for salesforce, $141.876 for Visa, $43.764 for Citigroup; 70% of initial levels
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| Pricing date: | Dec. 6, 2021
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| Settlement date: | Dec. 9, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.35%
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| Cusip: | 40439JVD4
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