Published on 11/27/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $970,000 17.3% contingent income barrier autocallables with memory on stocks
By Kiku Steinfeld
Chicago, Nov. 27 – HSBC USA Inc. priced $970,000 of autocallable contingent income barrier notes with memory coupon due April 17, 2026 linked to the common stocks of Apple Inc., Delta Air Lines, Inc. and Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 17.3%, paid monthly, if each underlying stock closes at or above its 70% barrier level on the related monthly observation date, plus any previously unpaid coupons.
The payout at maturity will be par if the worst performing stock ends at or above its 70% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing stock declines.
The securities will be called automatically starting on July 12, 2023 if the level of the worst performing stock is greater than or equal to its initial level on a monthly observation date.
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: | Apple Inc., Delta Air Lines, Inc. and Merck & Co., Inc.
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| Amount: | $970,000
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| Maturity: | April 17, 2026
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| Coupon: | 17.3%, paid monthly, if each underlying stock closes at or above its 70% 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 July 12, 2023 if the level of the worst performing stock is greater than or equal to its initial level on a monthly observation date
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| Initial levels: | $160.10 for Apple, $33.74 for Delta Air Lines, $113.75 for Merck
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| Coupon barriers: | $112.07 for Apple, $23.618 for Delta Air Lines, $79.625 for Merck, 70% of initial levels
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| Barrier levels: | $112.07 for Apple, $23.618 for Delta Air Lines, $79.625 for Merck, 70% of initial levels
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| Pricing date: | April 12, 2023
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| Settlement date: | April 17, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.75%
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| Cusip: | 40441X4L1
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