Published on 8/7/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $902,000 11.4% contingent income barrier autocallables with memory on stocks
By Kiku Steinfeld
Chicago, Aug. 7 – HSBC USA Inc. priced $902,000 of autocallable contingent income barrier notes with memory coupon due Feb. 28, 2025 linked to the common stocks of Amazon.com, Inc., Verizon Communications Inc. and FedEx Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 11.4%, paid monthly, if each underlying stock closes at or above its 60% coupon barrier on the related monthly observation date, plus any previously unpaid coupons.
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, payable in shares or cash at the option of the issuer.
The securities will be called automatically starting on Aug. 23, 2023 at par if the level of the worst performing stock is greater than or equal to its initial level on a subsequent quarterly observation date.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying stocks: | Amazon.com, Inc., Verizon Communications Inc. and FedEx Corp.
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| Amount: | $902,000
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| Maturity: | Feb. 28, 2025
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| Coupon: | 11.4%, paid monthly, if each underlying stock closes at or above its 60% coupon barrier on the related monthly observation date, plus any previously unpaid coupons
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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, payable in shares or cash at the option of the issuer
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| Call: | Automatically starting on Aug. 23, 2023 at par if the level of the worst performing stock is greater than or equal to its initial level on a quarterly observation date
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| Initial levels: | $95.82 for Amazon.com, $205.18 for FedEx, $38.53 for Verizon
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| Coupon barriers: | $57.492 for Amazon.com, $123.108 for FedEx, $23.118 for Verizon, 60% of initial levels
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| Barrier levels: | $47.91 for Amazon.com, $102.59 for FedEx, $19.265 for Verizon, 50% of initial levels
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| Pricing date: | Feb. 23, 2023
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| Settlement date: | Feb. 28, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40428HUZ3
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