Published on 8/16/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $72,000 autocallable contingent income barrier notes on Apple, Caterpillar
Chicago, Aug. 16 – HSBC USA Inc. priced $72,000 of autocallable contingent income barrier notes due July 22, 2024 linked to the least performing of the common stocks of Apple Inc. and Caterpillar Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 12.5%, paid monthly, if each underlying stock closes at or above its 60% barrier level on the related monthly observation date.
The securities will be called automatically starting on Oct. 19, 2022 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent quarterly observation date.
The payout at maturity will be par if the worst performing stock ends at or above its 60% barrier value. Otherwise, investors will lose 1% for every 1% that the worst performing stock declines.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying stocks: | Apple Inc. and Caterpillar Inc.
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Amount: | $72,000
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Maturity: | July 22, 2024
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Coupon: | 12.5% annual rate, paid monthly, if each underlying stock closes at or above its 60% barrier level on the related monthly observation date
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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
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Call: | Automatically starting on Oct. 19, 2022 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent quarterly observation date
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Initial levels: | $147.07 for Apple, $173.49 for Caterpillar
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Coupon barriers: | $88.242 for Apple, $104.094 for Caterpillar, 60% of initial levels
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Barrier levels: | $88.242 for Apple, $104.094 for Caterpillar, 60% of initial levels
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Pricing date: | July 18, 2022
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Settlement date: | July 21, 2022
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40441XEL0
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