Published on 8/2/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.05 million 11.8% autocallable contingent income barrier notes on stocks
Chicago, Aug. 2 – HSBC USA Inc. priced $3.05 million of autocallable contingent income barrier notes due July 28, 2026 linked to the least performing of the common stocks of Goldman Sachs Group, Inc., JPMorgan Chase & Co. and Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 11.8%, paid quarterly, if each underlying stock closes at or above its 70% barrier level on the related quarterly observation date.
The securities will be called automatically starting on Jan. 24, 2024 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent quarterly observation date.
The payout at maturity will be par if the worst performing stock ends at or above its 70% 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
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| Underlying stocks: | Goldman Sachs Group, Inc., JPMorgan Chase & Co. and Citigroup Inc.
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| Amount: | $3.05 million
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| Maturity: | July 28, 2026
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| Coupon: | 11.8% annual rate, paid quarterly, if each underlying stock closes at or above its 70% barrier level on the related quarterly observation date
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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; 1% loss for every 1% that worst performing stock declines if it ends below barrier value
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| Call: | Automatically starting on Jan. 24, 2024 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent quarterly observation date
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| Initial levels: | $47.66 for Citigroup, $158.00 for JPMorgan, $358.93 for Goldman Sachs
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| Coupon barriers: | $33.362 for Citigroup, $110.60 for JPMorgan, $251.251 for Goldman Sachs, 70% of initial levels
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| Barrier levels: | $33.362 for Citigroup, $110.60 for JPMorgan, $251.251 for Goldman Sachs, 70% of initial levels
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| Pricing date: | July 24
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| Settlement date: | July 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40447AGW8
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