Published on 10/4/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $417,000 autocallable barrier notes with step-up premium on stocks
Chicago, Oct. 4 – HSBC USA Inc. priced $417,000 of 0% autocallable barrier notes with step-up premium due Sept. 30, 2025 linked to the least performing of the common stocks of Apple Inc., Microsoft Corp. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on March 27, 2023 and on any subsequent quarterly observation date at a premium of 24% per year if each stock closes above the 80% call threshold level.
If the notes are not called, the payout at maturity will be par if the worst performing stock declines more than 20% but finishes at or above its 50% barrier. Investors will lose 1% for every 1% that the worst performing stock declines if it finishes below the barrier level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying stocks: | Apple Inc., Microsoft Corp. and Tesla, Inc.
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| Amount: | $417,000
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| Maturity: | Sept. 30, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called and worst performing stock declines more than 20% but finishes at or above barrier level par; 1% loss for every 1% that worst performing stock declines if it ends below the barrier level
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| Call: | Automatically starting on March 27, 2023 and on any subsequent quarterly observation date at a premium of 24% per year if each stock closes above call threshold level
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| Initial levels: | $151.76 for Apple, $236.41 for Microsoft, $282.94 for Tesla
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| Barrier levels: | $75.88 for Apple, $118.205 for Microsoft, $141.47 for Tesla, 50% of initial levels
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| Call threshold levels: | 80% of initial levels
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| Pricing date: | Sept. 27, 2022
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| Settlement date: | Sept. 30, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.775%
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| Cusip: | 40441XNZ9
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