Published on 10/10/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $500,000 autocallable contingent income barrier notes linked to Generac, PayPal
By Angela McDaniels
Tacoma, Wash., Oct. 10 – HSBC USA Inc. priced $500,000 of autocallable contingent income barrier notes due Sept. 30, 2024 linked to the lesser performing of the common stocks of Generac Holdings Inc. and PayPal Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 23.78%, paid monthly, if each stock closes at or above its 60% coupon barrier level on the related monthly observation date.
Starting Sept. 27, 2023, the securities will be called automatically at par if the lesser performing stock closes at or above its initial level on any monthly observation date.
The payout at maturity will be par if the lesser performing stock ends at or above its 50% barrier value. Otherwise, investors will receive a number of shares of the lesser performing stock equal to $1,000 divided by that stock’s initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
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: | Generac Holdings Inc. and PayPal Holdings, Inc.
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| Amount: | $500,000
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| Maturity: | Sept. 30, 2024
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| Coupon: | 23.78% annual rate, paid monthly if underlying stock closes at or above coupon barrier level on related monthly observation date
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| Price: | Par
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| Payout at maturity: | If lesser performing stock finishes at or above barrier value, par; otherwise, number of shares of lesser performing stock equal to $1,000 divided by that stock’s initial share price or, at issuer’s option, amount in cash equal to value of those shares
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| Call: | Starting Sept. 27, 2023, automatically at par if lesser performing stock closes at or above initial level on any monthly observation date
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| Initial share prices: | $171.08 for Generac and $87.66 for PayPal
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| Coupon barrier levels: | $102.648 for Generac and $52.596 for PayPal, 60% of initial share price
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| Barrier level: | $85.54 for Generac and $43.83 for PayPal, 50% of initial share price
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| Pricing date: | Sept. 22, 2022
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| Trade date: | Sept. 23, 2022
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| Settlement date: | Sept. 28, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40428HTZ5
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