Published on 11/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $260,000 12% autocallable yield notes on three stocks
By Kiku Steinfeld
Chicago, Nov. 1 – HSBC USA Inc. priced $260,000 of autocallable yield notes due April 6, 2026 linked to the common stocks of Ford Motor Co., Amazon.com, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The securities will be called automatically starting on April 3, 2024 if the level of the worst performing stock is greater than or equal to its initial level on any annual call determination date.
Investors will receive a coupon of 12%, paid monthly.
If the worst performing stock ends above its 50% downside threshold the payout at maturity will be par plus the coupon. Otherwise investors will lose 1% for every 1% that the worst performing stock declines, payable in shares or cash at the option of the issuer.
J.P. Morgan Securities LLC is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable yield notes
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| Underlying stocks: | Ford Motor Co., Amazon.com, Inc. and JPMorgan Chase & Co.
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| Amount: | $260,000
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| Maturity: | April 6, 2026
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| Coupon: | 12%, paid monthly
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| Price: | Par
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| Payout at maturity: | If worst performing stock finishes at or above its downside threshold level par; otherwise 1% loss for every 1% that worst performing stock declines, payable in shares or cash at the option of the issuer
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| Call: | Automatically starting on April 3, 2024 if the level of the worst performing stock is greater than or equal to its initial level on any annual call determination date
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| Initial levels: | $103.29 for Amazon.com, $12.60 for Ford Motor, $130.31 for JPMorgan Chase
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| Downside thresholds: | $51.645 for Amazon.com, $6.30 for Ford Motor, $65.155 for JPMorgan Chase, 50% of initial level
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| Pricing date: | March 31, 2023
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| Settlement date: | April 5, 2023
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 3%
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| Cusip: | 40428HVT6
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