Published on 10/16/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $300,000 37.1% autocallable contingent income barrier notes on stocks
Chicago, Oct. 16 – HSBC USA Inc. priced $300,000 of autocallable contingent income barrier notes with memory coupon due Oct. 14, 2025 linked to the least performing of the class A common stocks of Chewy, Inc. and Snap Inc. and the common stock of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 37.1%, paid monthly, if each underlying stock closes at or above its 50% barrier level on the related monthly observation date, plus any previously unpaid coupons.
The securities will be called automatically starting on Jan. 11, 2023 at par if the level of the worst performing stock is greater than or equal to 80% of 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 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 with memory coupon
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| Underlying stocks: | Chewy, Inc. (Ticker: CHWY), Snap Inc. (Ticker: SNAP) and Tesla, Inc. (Ticker: TSLA)
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| Amount: | $300,000
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| Maturity: | Oct. 14, 2025
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| Coupon: | 37.1%, annual rate, paid monthly, if each underlying stock closes at or above its 50% barrier level on the related monthly observation date, plus any previously unpaid coupons
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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. 11, 2023 at par if the level of the worst performing stock is greater than or equal to 80% of its initial level and on any subsequent quarterly observation date
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| Initial levels: | $37.94 for Chewy, $11.35 for Snap, $238.13 for Tesla
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| Coupon barriers: | $18.97 for Chewy, $5.675 for Snap, $119.065 for Tesla, 50% of initial levels
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| Barrier levels: | $18.97 for Chewy, $5.675 for Snap, $119.065 for Tesla, 50% of initial levels
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| Pricing date: | Oct. 6, 2022
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| Settlement date: | Oct. 13, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40441XRU6
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