Published on 12/4/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $533,000 12.2% autocallable contingent income barrier notes linked to Apple
By Kiku Steinfeld
Chicago, Dec. 4 – HSBC USA Inc. priced $533,000 of autocallable contingent income barrier notes due May 28, 2024 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 12.2%, paid monthly, if the underlying stock closes at or above its 78% barrier level on the related monthly observation date.
The payout at maturity will be par if the stock ends at or above its 78% barrier value. Otherwise investors will lose 1% for every 1% that the stock declines, payable in shares or cash at the option of the issuer.
The securities will be called automatically starting Oct. 25, 2023 at par if the level of the stock is greater than or equal to its initial level on a monthly observation date.
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: | Apple Inc.
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| Amount: | $533,000
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| Maturity: | May 28, 2024
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| Coupon: | 12.2%, paid monthly, if the underlying stock closes at or above its 78% barrier level on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | If stock finishes at or above the barrier level par; 1% loss for every 1% that stock declines if it ends below barrier value, payable in shares or cash at the option of the issuer
|
| Call: | Automatically starting Oct. 25, 2023 at par if the level of the stock is greater than or equal to its initial level on a monthly observation date
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| Initial level: | $165.02
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| Coupon barrier: | $128.7156, 78% of initial level
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| Barrier level: | $128.7156, 78% of initial level
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| Pricing date: | April 21, 2023
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| Settlement date: | April 26, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40428HWC2
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