Published on 9/14/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.01 million 14.25% autocallable contingent income barrier notes on stocks
Chicago, Sept. 14 – HSBC USA Inc. priced $2.01 million of autocallable contingent income barrier notes due Sept. 14, 2026 linked to the least performing of the common stocks of Delta Air Lines, Inc., Dollar Tree, Inc. and American Express Co., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 14.25%, paid monthly, if each underlying stock closes at or above its 50% barrier level on the related monthly observation date.
The securities will be called automatically starting on March 11, 2024 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent monthly observation date.
The payout at maturity will be par if the worst performing stock ends at or above its 50% 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: | Delta Air Lines, Inc., Dollar Tree, Inc. and American Express Co.
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| Amount: | $2.01 million
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| Maturity: | Sept. 14, 2026
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| Coupon: | 14.25% annual rate, paid monthly, if each underlying stock closes at or above its 50% barrier level on the related monthly 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 March 11, 2024 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent monthly observation date
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| Initial levels: | $157.43 for American Express, $40.82 for Delta, $116.02 for Dollar Tree
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| Coupon barriers: | $78.715 for American Express, $20.41 for Delta, $58.01 for Dollar Tree, 50% of initial levels
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| Barrier levels: | $78.715 for American Express, $20.41 for Delta, $58.01 for Dollar Tree, 50% of initial levels
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| Pricing date: | Sept. 8
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| Settlement date: | Sept. 13
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40447AMG6
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