Published on 8/4/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $350,000 20.7% autocallable contingent income barrier notes linked to stocks
New York, Aug. 4 – HSBC USA Inc. priced $350,000 of autocallable contingent income barrier notes due Sept. 13, 2027 linked to the common stocks of Ford Motor Co., Netflix, Inc. and Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 20.7%, paid monthly, if each underlying stock closes at or above its 60% coupon barrier on the related monthly observation date.
The payout at maturity will be par if the worst performing stock ends at or above its 50% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing stock declines.
The securities will be called automatically starting on March 8, 2023 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent monthly observation date.
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: | Ford Motor Co., Netflix, Inc. and Bank of America Corp.
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| Amount: | $350,000
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| Maturity: | Sept. 13, 2027
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| Coupon: | 20.7%, paid monthly, if each underlying stock closes at or above its 60% coupon barrier on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | If worst performing stock finishes at or above the barrier level par; 1% loss for every 1% that worst performing stock declines if it ends below barrier value
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| Call: | Automatically starting on March 8, 2023 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent monthly observation date
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| Initial levels: | $34.65 for Bank of America, $15.47 for Ford Motor, $227.44 for Netflix
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| Coupon barriers: | $20.79 for Bank of America, $9.282 for Ford Motor, $136.464 for Netflix, 60% of initial levels
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| Barrier levels: | $17.325 for Bank of America, $7.735 for Ford Motor, $113.72 for Netflix, 50% of initial levels
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| Pricing date: | Sept. 8, 2022
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| Settlement date: | Sept. 13, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40441XKD1
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