Published on 9/22/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $705,000 16.75% autocallable contingent income barrier notes on stocks
Chicago, Sept. 22 – HSBC USA Inc. priced $705,000 of autocallable contingent income barrier notes with memory coupon due Sept. 22, 2025 linked to the least performing of the common stocks of Tesla, Inc., Microsoft Corp. and Procter & Gamble Co., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 16.75%, paid monthly, if each underlying stock closes at or above its 50% barrier level on the related monthly observation date, plus any previously unpaid coupons.
The securities will be called automatically starting on March 17, 2023 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 50% 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 with memory coupon
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| Underlying stocks: | Tesla, Inc., Microsoft Corp. and Procter & Gamble Co.
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| Amount: | $705,000
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| Maturity: | Sept. 22, 2025
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| Coupon: | 16.75% annual rate, paid monthly, if each underlying stock closes at or above its 50% barrier level on the related monthly observation date, plus any previously unpaid coupons
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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 March 17, 2023 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: | $244.74 for Microsoft, $303.35 for Tesla, $138.28 for Procter & Gamble
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| Coupon barriers: | $122.37 for Microsoft, $151.675 for Tesla, $69.14 for Procter & Gamble, 50% of initial levels
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| Barrier levels: | $122.37 for Microsoft, $151.675 for Tesla, $69.14 for Procter & Gamble, 50% of initial levels
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| Pricing date: | Sept. 16, 2022
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| Settlement date: | Sept. 21, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40441XLU2
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