Published on 8/18/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $710,000 17.6% autocallable contingent income barrier notes on stocks
Chicago, Aug. 18 – HSBC USA Inc. priced $710,000 of autocallable contingent income barrier notes due July 8, 2024 linked to the least performing of the stocks of NIKE, Inc., Microsoft Corp. and Caterpillar Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a quarterly coupon of 17.6% if all three stocks close above 60% of their initial values on the related observation date.
The securities will be called automatically starting on Jan. 4, 2023 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, payable in shares.
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: | NIKE, Inc., Microsoft Corp. and Caterpillar Inc.
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Amount: | $710,000
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Maturity: | July 8, 2024
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Coupon: | 17.6% annual rate, payable quarterly if all three stocks close above coupon barrier values on related 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, payable in shares
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Call: | Automatically starting on Jan. 4, 2023 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: | $178.76 for Caterpillar, $256.83 for Microsoft, $102.20 for NIKE
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Coupon barriers: | $107.256 for Caterpillar, $154.098 for Microsoft, $61.32 for NIKE, 60% of initial levels
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Barrier levels: | $107.256 for Caterpillar, $154.098 for Microsoft, $61.32 for NIKE, 60% of initial levels
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Pricing date: | June 30, 2022
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Settlement date: | July 8, 2022
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.75%
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Cusip: | 40428HTM4
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