Published on 8/4/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.76 million 17% autocallable contingent income barrier notes on Tesla
By Wendy Van Sickle
Columbus, Ohio, Aug. 4 – HSBC USA Inc. priced $3.76 million of autocallable contingent income barrier notes due Aug. 3, 2026 linked to the common stock of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 17%, paid monthly, if the underlying stock closes at or above its 60% barrier level on the related monthly observation date.
The securities will be called automatically starting Jan. 31, 2024 at par if the level of the stock is greater than or equal to its initial level and on any subsequent monthly observation date.
The payout at maturity will be par if the stock ends at or above its 60% barrier value. Otherwise, investors will lose 1% for every 1% that the stock declines.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Autocallable contingent income barrier notes
|
Underlying stock: | Tesla, Inc.
|
Amount: | $3,764,000
|
Maturity: | Aug. 3, 2026
|
Coupon: | 17% annual rate, paid monthly, if the underlying stock closes at or above its 60% barrier level on the related monthly observation date
|
Price: | Par
|
Payout at maturity: | If stock finishes at or above the barrier level par; 1% loss for every 1% that stock declines if it ends below barrier value
|
Call: | Automatically starting Jan. 31, 2024 at par if the level of the stock is greater than or equal to its initial level and on any subsequent monthly observation date
|
Initial level: | $255.71
|
Coupon barrier: | $153.426, 60% of initial level
|
Barrier level: | $153.426, 60% of initial level
|
Pricing date: | July 27
|
Settlement date: | Aug. 1
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 2.75%
|
Cusip: | 40447AGU2
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.