Published on 9/11/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.91 million 20.35% autocallable contingent income barrier notes on stocks
Chicago, Sept. 11 – HSBC USA Inc. priced $1.91 million of autocallable contingent income barrier notes due Sept. 1, 2026 linked to the least performing of the common stocks of Apple Inc., Amazon.com, Inc. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 20.35%, 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 Feb. 27, 2024 at par if the level of the worst performing 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 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., Amazon.com, Inc. and Tesla, Inc.
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| Amount: | $1.91 million
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| Maturity: | Sept. 1, 2026
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| Coupon: | 20.35% 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 Feb. 27, 2024 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent monthly observation date
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| Initial levels: | $134.91 for Amazon, $184.12 for Apple, $257.18 for Tesla
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| Coupon barriers: | $80.946 for Amazon, $110.472 for Apple, $154.308 for Tesla, 60% of initial levels
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| Barrier levels: | $80.946 for Amazon, $110.472 for Apple, $154.308 for Tesla, 60% of initial levels
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| Pricing date: | Aug. 29
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| Settlement date: | Sept. 1
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40447AKR4
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