Published on 10/3/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $640,000 autocallable contingent income barrier notes on three stocks
By Kiku Steinfeld
Chicago, Oct. 3 – HSBC USA Inc. priced $640,000 of autocallable contingent income barrier notes due March 23, 2026 linked to Advanced Micro Devices, Inc., Amazon.com, Inc. and Blackstone Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 22.2% if each stock closes at or above its coupon barrier level, 60% of the initial level, on the determination date for that period.
The notes will be called at par plus the coupon if each stock closes at or above 80% of its initial price on any quarterly call observation date.
If the notes are not called and each stock finishes at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the losses of the least performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Advanced Micro Devices, Inc., Amazon.com, Inc. and Blackstone Inc.
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| Amount: | $640,000
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| Maturity: | March 23, 2026
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| Coupon: | 22.2% annual rate, payable monthly if each stock closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of worst performing stock
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| Call: | Automatically at par plus the coupon if each stock closes at or above 80% of its initial price on any quarterly call observation date
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| Initial levels: | $96.81 for Advanced Micro, $97.71 for Amazon, $82.54 for Blackstone
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| Coupon barrier levels: | $58.086 for Advanced Micro, $58.626 for Amazon, $49.524 for Blackstone; 60% of initial prices
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| Barrier levels: | $58.086 for Advanced Micro, $58.626 for Amazon, $49.524 for Blackstone; 60% of initial prices
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| Pricing date: | March 20, 2023
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| Settlement date: | March 23, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40441X2G4
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