Published on 7/13/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $868,000 callable contingent income barrier notes linked to retail stocks
By Angela McDaniels
Tacoma, Wash., July 13 – HSBC USA Inc. priced $868,000 of callable contingent income barrier notes due Aug. 1, 2025 linked to the common stocks of Amazon.com, Inc., Costco Wholesale Corp., Walmart Inc. and Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes pay a coupon at the rate of 26.25% per year if each stock closes at or above its coupon barrier level, 70% of its initial share price, on the observation date for that month.
The payout at maturity will be par unless the worst performing stock finishes below its barrier level, 50% of its initial share price, in which case investors will be exposed to the decline of the worst performing stock from its initial share price.
The notes are callable at par monthly beginning in October 2022.
The agent is HSBC Securities (USA) Inc.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying stocks: | Amazon.com, Inc., Costco Wholesale Corp., Walmart Inc. and Target Corp.
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| Amount: | $868,000
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| Maturity: | Aug. 1, 2025
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| Coupon: | 26.25% per year, payable monthly if each stock closes at or above coupon barrier level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless worst performing stock finishes below barrier level, in which case exposure to decline of worst performing stock from initial share price
|
| Call option: | At par monthly beginning in October 2022
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| Initial share prices: | $120.97 with respect to Amazon, $522.31 with respect to Costco, $126.59 with respect to Walmart and $154.60 with respect to Target
|
| Coupon barrier levels: | $84.679 with respect to Amazon, $365.617 with respect to Costco, $88.613 with respect to Walmart and $108.22 with respect to Target, or 70% of initial share prices
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| Barrier levels: | $60.485 with respect to Amazon, $261.155 with respect to Costco, $63.295 with respect to Walmart and $77.30 with respect to Target, or 50% of initial share prices
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| Pricing date: | July 27, 2022
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| Settlement date: | Aug. 1, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.8%
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| Cusip: | 40441XFA3
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