Published on 2/18/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.77 million autocallable contingent income barrier notes on three stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 18 – HSBC USA Inc. priced $1.77 million of autocallable contingent income barrier notes due Feb. 18, 2024 linked to the stocks of Bank of America Corp, Costco Wholesale Corp. and Advanced Micro Devices, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 15.5% if each stock closes at or above the barrier level, 60% of its initial level, on the determination date for that month.
The notes will be called at par plus the coupon if each stock closes at or above the initial price on any monthly observation date after three months.
The payout at maturity will be par unless any stock finishes below the barrier level, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
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: | Bank of America Corp., Costco Wholesale Corp. and Advanced Micro Devices, Inc.
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| Amount: | $1,769,000
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| Maturity: | Feb. 18, 2024
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| Coupon: | 15.5% per year, payable monthly if each stock closes at or above barrier level on determination date for that month
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below barrier level, in which case, shares of least performer equal to $1,000 divided by initial price or cash at issuer’s option
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| Call: | Par if each stock closes at or above initial price on any monthly observation date after three months
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| Initial levels: | $47.79 for BofA, $513.92 for Costco and $121.47 for Advanced Micro
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| Barrier levels: | $28.674 for BofA, $308.352 for Costco and $72.882 for Advanced Micro; 60% of initial prices
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| Pricing date: | Feb. 15
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| Settlement date: | Feb. 18
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40428HRX2
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