Published on 7/5/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $400,000 9.5% autocallable yield notes tied to Walmart, JPMorgan, NextEra
Chicago, July 5 – HSBC USA Inc. priced $400,000 of autocallable yield notes due July 14, 2025 linked to the least performing of the common stocks of Walmart Inc., JPMorgan Chase & Co. and NextEra Energy, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 9.5%, paid monthly.
The securities will be called automatically at par starting on July 11, 2023 if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent annual determination date.
If the worst performing stock ends above its 50% downside threshold the payout at maturity will be par plus the coupon. 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 yield notes
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| Underlying stocks: | Walmart Inc., JPMorgan Chase & Co. and NextEra Energy, Inc.
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| Amount: | $400,000
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| Maturity: | July 14, 2025
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| Coupon: | 9.5% annual rate, paid monthly
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| Price: | Par
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| Payout at maturity: | If worst performing stock finishes at or above its downside threshold level par; otherwise, 1% loss for every 1% that worst performing stock declines
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| Call: | Automatically at par starting on July 11, 2023 if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent annual determination date
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| Initial levels: | $112.62 for JPMorgan, $79.11 for NextEra, $124.25 for Walmart
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| Downside thresholds: | $56.31 for JPMorgan, $39.555 for NextEra, $62.125 for Walmart, 50% of initial levels
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| Pricing date: | July 5, 2022
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| Settlement date: | July 12, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40441XEE6
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