Published on 2/29/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.68 million autocallable contingent income barrier notes on Wells Fargo
Chicago, Feb. 29 – HSBC USA Inc. priced $1.68 million of autocallable contingent income barrier notes with memory coupon due Feb. 26, 2026 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10%, paid quarterly, if the underlying stock closes at or above its 70% barrier level on the related quarterly observation date, plus any previously unpaid coupons.
The securities will be called automatically starting on Aug. 22, 2024 if the level of the 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 stock ends at or above its 70% barrier value. Otherwise, investors will lose 1% for every 1% that the stock declines, payable in shares.
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 stock: | Wells Fargo & Co. (Ticker: WFC)
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| Amount: | $1,678,000
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| Maturity: | Feb. 26, 2026
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| Coupon: | 10% annual rate, paid quarterly, if the underlying stock closes at or above its 70% barrier level on the related quarterly observation date, plus any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above the barrier level par; 1% loss for every 1% that stock declines if it ends below barrier value, payable in shares
|
| Call: | Automatically at par starting on Aug. 22, 2024 if the level of the stock is greater than or equal to its initial level and on any subsequent quarterly observation date
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| Initial level: | $53.37
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| Coupon barrier: | $37.359, 70% of initial level
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| Barrier level: | $37.359, 70% of initial level
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| Pricing date: | Feb. 22
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| Settlement date: | Feb. 27
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
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| Cusip: | 40428HA36
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