Published on 12/14/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $445,000 0% autocallable yield notes linked to three stocks
By Kiku Steinfeld
Chicago, Dec. 14 – HSBC USA Inc. priced $445,000 of 12% autocallable yield notes due April 27, 2026 linked to the common stocks of Verizon Communications Inc., Amazon.com, Inc. and Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
The securities will be called automatically starting on April 24, 2024 if the level of the worst performing stock is greater than or equal to its initial level on a quarterly determination date.
Investors will receive a coupon of 12% per year 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 issuer’s option
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable yield notes
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| Underlying stocks: | Verizon Communications Inc., Amazon.com, Inc. and Ford Motor Co.
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| Amount: | $445,000
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| Maturity: | April 27, 2026
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| Coupon: | 12% per year 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 issuer’s option
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| Call: | Automatically starting on April 24, 2024 if the level of the worst performing stock is greater than or equal to its initial level on a quarterly determination date
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| Initial levels: | $106.96 for Amazon.com, $11.81 for Ford Motor, $37.32 for Verizon
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| Downside thresholds: | $53.48 for Amazon.com, $5.905 for Ford Motor, $18.66 for Verizon, 50% of initial level
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| Pricing date: | April 21, 2023
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| Settlement date: | April 26, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40428HVX7
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