Published on 7/15/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.05 million contingent income barrier autocalls on Caterpillar, BofA, Nvidia
By William Gullotti
Buffalo, N.Y., July 15 – HSBC USA Inc. priced $2.05 million of autocallable contingent income barrier notes due April 21, 2025 linked to the least performing of the stocks of Caterpillar Inc., Bank of America Corp. and Nvidia 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 19.2% 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, 85% of initial level, on any quarterly call observation date.
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 receive a number of shares of worst performer equal to $1,000 divided by that stock’s 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: | Caterpillar Inc., Bank of America Corp., Nvidia Corp.
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| Amount: | $2,047,000
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| Maturity: | April 21, 2025
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| Coupon: | 19.2% per year, payable monthly if each stock closes at or above coupon trigger on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus final coupon; otherwise, receive a number of shares of worst performer equal to $1,000 divided by that stock’s initial level
|
| Call: | At par plus coupon if each stock closes at or above call level on any quarterly call observation date
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| Initial levels: | $173.87 for Caterpillar, $30.84 for BofA, $151.64 for Nvidia
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| Call levels: | 85% of initial levels
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| Coupon triggers: | $104.322 for Caterpillar, $18.504 for BofA, $90.984 for Nvidia; 60% of initial levels
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| Barrier levels: | $104.322 for Caterpillar, $18.504 for BofA, $90.984 for Nvidia; 60% of initial levels
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| Pricing date: | July 13
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| Settlement date: | July 15
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40428HTP7
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