Published on 2/14/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.37 million contingent income barrier autocalls with memory on three stocks
New York, Feb. 14 – HSBC USA Inc. priced $2.37 million of autocallable contingent income barrier notes with memory coupon due Feb. 1, 2027 linked to the stock performance of Advanced Micro Devices, Inc., Amazon.com, Inc. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 16.7%, paid monthly, if each underlying stock closes at or above its 60% barrier level on the related monthly observation date, plus any previously unpaid coupons.
The securities will be called automatically at par if the closing level of the worst performing stock is greater than or equal to its initial level on any monthly observation date starting on January 29, 2025.
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.
|
Issue: | Autocallable contingent income barrier notes with memory coupon
|
Underlying stocks: | Advanced Micro Devices, Inc., Amazon.com, Inc. and Alphabet Inc.
|
Amount: | $2,368,000
|
Maturity: | Feb. 1, 2027
|
Coupon: | 16.7%, paid monthly, if each underlying stock closes at or above its 60% barrier level on the related monthly observation date, plus any previously unpaid coupons
|
Price: | Par
|
Payout at maturity: | If worst performing stock finishes at or above the barrier level, par; otherwise, 1% loss for every 1% that worst performing stock declines from initial level
|
Call: | Automatically at par if the closing level of the worst performing stock is greater than or equal to its initial level on any monthly observation date starting on January 29, 2025
|
Initial levels: | $177.25 for Advanced Micro Devices, $159.12 for Amazon.com, $153.79 for Alphabet
|
Coupon barriers: | $106.35 for Advanced Micro Devices, $95.472 for Amazon.com, $92.274 for Alphabet, 60% of initial levels
|
Barrier levels: | $106.35 for Advanced Micro Devices, $95.472 for Amazon.com, $92.274 for Alphabet, 60% of initial levels
|
Pricing date: | Jan. 26
|
Settlement date: | Jan. 31
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 0%
|
Cusip: | 40447AXJ8
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.