Published on 9/18/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $850,000 22.7% autocallable contingent income barrier notes on stocks
Chicago, Sept. 18 – HSBC USA Inc. priced $850,000 of autocallable contingent income barrier notes due Sept. 6, 2024 linked to the least performing of the common stocks of Costco Wholesale Corp., ConocoPhillips and Adobe Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 22.7%, paid quarterly, if each underlying stock closes at or above its 60% barrier level on the related quarterly observation date.
The securities will be called automatically starting on March 1, 2023 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 60% 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: | Costco Wholesale Corp., ConocoPhillips and Adobe Inc.
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| Amount: | $850,000
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| Maturity: | Sept. 6, 2024
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| Coupon: | 22.7% annual rate, paid quarterly, if each underlying stock closes at or above its 60% 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 March 1, 2023 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: | $373.44 for Adobe, $109.45 for ConocoPhillips, $522.10 for Costco
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| Coupon barriers: | $224.064 for Adobe, $65.67 for ConocoPhillips, $313.26 for Costco, 60% of initial levels
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| Barrier levels: | $224.064 for Adobe, $65.67 for ConocoPhillips, $313.26 for Costco, 60% of initial levels
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| Pricing date: | Aug. 31, 2022
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| Settlement date: | Sept. 6, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40441XLY4
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