Published on 8/17/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $412,000 17% autocallable contingent income barrier notes on Tesla
By Angela McDaniels
Tacoma, Wash., Aug. 17 – HSBC USA Inc. priced $412,000 of autocallable contingent income barrier notes due March 14, 2024 linked to the common stock of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 18.5%, paid monthly, if the underlying stock closes at or above its 50% coupon barrier level on the related monthly observation date.
Starting March 9, 2023, the securities will be called automatically at par if the level of the stock is greater than or equal to its initial level on any monthly observation date.
The payout at maturity will be par if the stock ends at or above its 50% barrier value. Otherwise, investors will lose 1% for every 1% that the 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 stock: | Tesla, Inc.
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| Amount: | $412,000
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| Maturity: | March 14, 2024
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| Coupon: | 18.5% annual rate, paid monthly, if the underlying stock closes at or above its coupon barrier level on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | If stock finishes at or above the barrier value, par; 1% loss for every 1% that stock declines if it ends below barrier value
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| Call: | Starting March 9, 2023, automatically at par if the level of the stock is greater than or equal to its initial level on any monthly observation date
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| Initial level: | $299.68
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| Coupon barrier: | $149.84, 50% of initial level
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| Barrier value: | $149.84, 50% of initial level
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| Pricing date: | Sept. 9, 2022
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| Settlement date: | Sept. 14, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40441XKF6
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