Published on 5/30/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.25 million contingent income barrier notes on three stocks
By Wendy Van Sickle
Columbus, Ohio, May 30 – HSBC USA Inc. priced $1.25 million of contingent income barrier notes due May 28, 2024 linked to Caterpillar Inc., NIKE, Inc. and Walmart 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 17% if each stock closes at or above its coupon barrier level, 70% of the initial level, on the determination date for that period.
If each stock finishes at or above its 70% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the losses of the least performing stock, payable as shares.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income barrier notes
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Underlying stocks: | Caterpillar Inc., NIKE, Inc. and Walmart Inc.
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Amount: | $1,253,000
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Maturity: | May 28, 2024
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Coupon: | 17% annual rate, payable monthly if each stock closes at or above coupon barrier level on determination date for that period
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Price: | Par
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Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of worst performing stock
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Initial levels: | $110.18 for NIKE, $214.26 for Caterpillar, $148.59 for Walmart
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Coupon barrier levels: | $77.126 for NIKE, $149.982 for Caterpillar, $104.013 for Walmart; 70% of initial prices
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Barrier levels: | $77.126 for NIKE, $149.982 for Caterpillar, $104.013 for Walmart; 70% of initial prices
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Pricing date: | May 22
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Settlement date: | May 24
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.3%
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Cusip: | 40447ABE3
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