Published on 11/10/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $290,000 21.03% autocallable contingent income barrier notes on two stocks
By Kiku Steinfeld
Chicago, Nov. 10 – HSBC USA Inc. priced $290,000 of autocallable contingent income barrier notes due April 14, 2026 linked to the stocks of Block, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 21.03%, paid monthly, if each underlying stock closes at or above its 60% barrier level on the related monthly 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.
The securities will be called automatically starting on July 11, 2023 at par if the level of the worst performing stock is greater than or equal to 85% of its initial level on a quarterly observation date.
J.P. Morgan Securities LLC is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Block, Inc. and JPMorgan Chase & Co.
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| Amount: | $290,000
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| Maturity: | April 14, 2026
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| Coupon: | 21.03%, paid monthly, if each underlying stock closes at or above its 60% 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 July 11, 2023 at par if the level of the worst performing stock is greater than or equal to 85% of its initial level on a quarterly observation date
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| Initial levels: | $128.50 for JPMorgan Chase, $62.74 for Block
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| Coupon barriers: | $77.10 for JPMorgan Chase, $37.644 for Block, 60% of initial levels
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| Barrier levels: | $77.10 for JPMorgan Chase, $37.644 for Block, 60% of initial levels
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| Pricing date: | April 12, 2023
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| Settlement date: | April 14, 2023
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 3.5%
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| Cusip: | 40441X4W7
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