Published on 3/22/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $12.96 million autocallable contingent income barrier notes with memory
New York, March 22 – HSBC USA Inc. priced $12.96 million of autocallable contingent income barrier notes with memory coupon due March 20, 2026 linked to the stock performance of Meta Platforms, Inc., Amazon.com, Inc., Nvidia Corp. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 16.35%, paid monthly, if each underlying stock closes at or above its 50% 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 Sept. 17, 2024.
The payout at maturity will be par if the worst performing stock ends at or above its 50% 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 with memory coupon
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| Underlying stocks: | Meta Platforms, Inc., Amazon.com, Inc., Nvidia Corp. and Microsoft Corp.
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| Amount: | $12,957,000
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| Maturity: | March 20, 2026
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| Coupon: | 16.35%, paid monthly, if each underlying stock closes at or above its 50% 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; otherwise, 1% loss for every 1% that worst performing stock declines from initial level
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| 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 Sept. 17, 2024
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| Initial levels: | $174.42 for Amazon.com, $484.10 for Meta Platforms, $416.42 for Microsoft, $878.365 for Nvidia
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| Coupon barriers: | $87.21 for Amazon.com, $242.05 for Meta Platforms, $208.21 for Microsoft, $439.1825 for Nvidia, 50% of initial levels
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| Barrier levels: | $87.21 for Amazon.com, $242.05 for Meta Platforms, $208.21 for Microsoft, $439.1825 for Nvidia, 50% of initial levels
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| Pricing date: | March 15
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| Settlement date: | March 20
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.7%
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| Cusip: | 40447AK86
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