Published on 12/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $380,000 20% autocallable contingent income barrier notes on two stocks
Chicago, Dec. 1 – HSBC USA Inc. priced $380,000 of autocallable contingent income barrier notes due Oct. 28, 2025 linked to the least performing of the common stocks of Goldman Sachs Group, Inc. and Advanced Micro Devices, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 20%, paid monthly, if each underlying stock closes at or above its 65% barrier level on the related monthly observation date.
The securities will be called automatically starting on Jan. 25, 2023 at par if the level of the worst performing stock is greater than or equal to 85% of its initial level and on any subsequent monthly observation date.
If the notes are not called because both stocks finish below the call level, the payout at maturity will be par if the worst performing stock ends at or above its 65% 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: | Goldman Sachs Group, Inc. and Advanced Micro Devices, Inc.
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| Amount: | $380,000
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| Maturity: | Oct. 28, 2025
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| Coupon: | 20% annual rate, paid monthly, if each underlying stock closes at or above its 65% barrier level on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | At par if called because both stocks closed above call barrier; if worst performing stock finishes below call barrier but 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. 25, 2023 at par if the level of the worst performing stock is greater than or equal to 85% of its initial level and on any subsequent monthly observation date
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| Initial levels: | $61.47 for AMD, $332.40 for Goldman
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| Coupon barriers: | $39.9555 for AMD, $216.06 for Goldman, 65% of initial levels
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| Barrier levels: | $39.9555 for AMD, $216.06 for Goldman, 65% of initial levels
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| Call barrier levels: | 85% of initial levels
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| Pricing date: | Oct. 25, 2022
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| Settlement date: | Oct. 28, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40441XSM3
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