Published on 11/9/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.27 million contingent income barrier autocalls with memory coupon on stocks
New York, Nov. 9 – HSBC USA Inc. priced $4.27 million of autocallable contingent income barrier notes with memory coupon due Nov. 9, 2026 linked to the common stocks of Adobe Inc., Amazon.com, Inc. and Intel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 17.5%, paid monthly, if each underlying stock closes at or above its 60% barrier level on the related monthly observation date, plus any previously unpaid coupons.
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.
The securities will be called automatically starting on Nov. 6, 2024 if the level of the worst performing stock is greater than or equal to its initial level on any monthly observation date.
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: | Adobe Inc., Amazon.com, Inc. and Intel Corp.
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| Amount: | $4,271,000
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| Maturity: | Nov. 9, 2026
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| Coupon: | 17.5%, paid monthly, if each underlying stock closes at or above its 60% 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 Nov. 6, 2024 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: | $558.71 for Adobe, $138.07 for Amazon.com, $37.70 for Intel
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| Coupon barriers: | $335.226 for Adobe, $82.842 for Amazon.com, $22.62 for Intel, 60% of initial levels
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| Barrier levels: | $335.226 for Adobe, $82.842 for Amazon.com, $22.62 for Intel, 60% of initial levels
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| Pricing date: | Nov. 2
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| Settlement date: | Nov. 7
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40447AQR8
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