Published on 11/13/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $538,000 autocallable contingent income barrier notes on three stocks
By Kiku Steinfeld
Chicago, Nov. 14 – HSBC USA Inc. priced $538,000 of autocallable contingent income barrier notes due March 18, 2025 linked to JPMorgan Chase & Co., Bank of America Corp. and Amazon.com, Inc., according to a 525B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 10% if each stock closes at or above its coupon barrier level, 60% of the initial level, on the determination date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any monthly observation date after six months.
If the notes are not called and each stock finishes at or above its 50% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the losses of the least performing stock.
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: | JPMorgan Chase & Co., Bank of America Corp. and Amazon.com, Inc.
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| Amount: | $538,000
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| Maturity: | March 18, 2025
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| Coupon: | 10% annual rate, payable monthly if each stock closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of worst performing stock
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| Call: | Automatically at par plus the coupon if each stock closes at or above its initial price on any monthly observation date after six months
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| Initial levels: | $132.48 for JPMorgan, $41.50 for BofA, $2,947.33 for Amazon
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| Coupon barrier levels: | $79.488 for JPMorgan, $24.90 for BofA, $1,768.398 for Amazon, 60% of initial prices
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| Barrier levels: | $66.24 for JPMorgan, $20.75 for BofA, $1,473.665 for Amazon, 50% of initial prices
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| Pricing date: | March 15
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| Settlement date: | March 18
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40439JJ71
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