Published on 4/19/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.05 million callable contingent income buffer notes on three stocks
By William Gullotti
Buffalo, N.Y., April 19 – HSBC USA Inc. priced $1.05 million of callable contingent income buffer notes due April 8, 2026 linked to the stock performance of Charter Communications, Inc., Crown Castle Inc. and PNC Financial Services Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 24.9% if each stock closes at or above its trigger level, 75% of its initial level, on the observation date for that period.
The notes will be callable at par on any monthly call observation date after three months.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its 75% buffer level.
Otherwise, investors will lose 1.3333% for every 1% decline of the worst performer beyond 25%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income buffer notes
|
| Underlying stocks: | Charter Communications, Inc., Crown Castle Inc., PNC Financial Services Group, Inc.
|
| Amount: | $1,045,000
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| Maturity: | April 8, 2026
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| Coupon: | 24.9%, payable monthly if each stock closes at or above trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above buffer level, par plus final coupon; otherwise, lose 1.3333% for every 1% decline of the worst performer beyond 25%
|
| Call option: | At par on any monthly call observation date after three months
|
| Initial levels: | $275.69 for Charter, $102.17 for Crown Castle, $157.14 for PNC
|
| Trigger levels: | $206.7675 for Charter, $76.6275 for Crown Castle, $117.855 for PNC; 75% of initial levels
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| Buffer levels: | $206.7675 for Charter, $76.6275 for Crown Castle, $117.855 for PNC; 75% of initial levels
|
| Pricing date: | April 3
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| Settlement date: | April 8
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40447AW91
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