Published on 4/27/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.3 million autocallable contingent income barrier notes on two stocks
By Kiku Steinfeld
Chicago, April 27 – HSBC USA Inc. priced $1.3 million of autocallable contingent income barrier notes due Oct. 4, 2024 linked to the least performing of the shares of Affirm Holdings, Inc. and Opendoor Technologies 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 21.5% if each stock closes at or above its coupon trigger level, 60% of the initial level, on the observation date for that period.
The notes will be called at par if each stock closes at or above 80% of its initial share price on any monthly call observation date after three months.
If the notes are not called and each stock finishes at or above its 50% barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the least-performing stock from its 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: | Affirm Holdings, Inc. and Opendoor Technologies Inc.
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Amount: | $1,299,000
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Maturity: | Oct. 4, 2024
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Coupon: | 21.5% annual rate, payable monthly if each stock closes at or above coupon trigger level on observation date for that period
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Price: | Par
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Payout at maturity: | If each stock finishes at or above barrier level, par; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
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Call: | At par if each stock closes at or above 80% of initial price on any monthly call observation date after three months
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Initial levels: | $112.77 for Affirm, $19.96 for Opendoor
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Coupon trigger levels: | $67.662 for Affirm, $11.976 for Opendoor, 60% of initial prices
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Barrier levels: | $56.385 for Affirm, $9.98 for Opendoor, 50% of initial prices
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Pricing date: | Sept. 29, 2021
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Settlement date: | Oct. 4, 2021
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.25%
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Cusip: | 40439JND3
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