Published on 1/25/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.37 million 12% autocallable contingent income barrier notes on stocks
Chicago, Jan. 25 – HSBC USA Inc. priced $1.37 million of autocallable contingent income barrier notes due Jan. 25, 2027 linked to the least performing of the stocks of Apple Inc., Microsoft Corp. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 12%, paid monthly, if each underlying stock closes at or above its 65% barrier level on the related monthly observation date.
The securities will be called automatically starting on July 22, 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 65% 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. (Ticker: AAPL), Microsoft Corp. (Ticker: MSFT) and Alphabet Inc. (Ticker: MSFT)
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| Amount: | $1,372,000
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| Maturity: | Jan. 25, 2027
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| Coupon: | 12% annual rate, paid monthly, if each underlying stock closes at or above its 65% 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 July 22, 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: | $191.56 for Apple, $146.38 for Alphabet, $398.67 for Microsoft
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| Coupon barriers: | $124.514 for Apple, $95.147 for Alphabet, $259.1355 for Microsoft, 65% of initial levels
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| Barrier levels: | $124.514 for Apple, $95.147 for Alphabet, $259.1355 for Microsoft, 65% of initial levels
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| Pricing date: | Jan. 19
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| Settlement date: | Jan. 24
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40447AWP5
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