Published on 3/25/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.1 million contingent income barrier autocalls with memory on stocks
New York, March 25 – HSBC USA Inc. priced $6.1 million of autocallable contingent income barrier notes with memory coupon due March 22, 2027 linked to the stock performance of Apple Inc. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10%, paid quarterly, if each underlying stock closes at or above its 65% barrier level on the related quarterly 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 quarterly observation date starting on March 19, 2025.
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 with memory coupon
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Underlying stocks: | Apple Inc. and Alphabet Inc.
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Amount: | $6.1 million
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Maturity: | March 22, 2027
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Coupon: | 10%, paid quarterly, if each underlying stock closes at or above its 65% barrier level on the related quarterly 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 quarterly observation date starting on March 19, 2025
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Initial levels: | $173.72 for Apple, $147.68 for Class A Alphabet
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Coupon barriers: | $112.918 for Apple, $95.992 for Class A Alphabet, 65% of initial levels
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Barrier levels: | $112.918 for Apple, $95.992 for Class A Alphabet, 65% of initial levels
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Pricing date: | March 18
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Settlement date: | March 21
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.85%
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Cusip: | 40447AL77
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