Published on 2/5/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $350,000 12% autocallable yield notes linked to GM, Micron, BofA
Chicago, Feb. 5 – HSBC USA Inc. priced $350,000 of autocallable yield notes due May 18, 2026 linked to the least performing of the common stocks of General Motors Co., Micron Technology, Inc. and Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a monthly coupon at an annual 12% rate.
The securities will be called automatically at par if the level of the worst performing stock is greater than or equal to its initial level starting after one year and on any subsequent quarterly determination date.
If the worst performing stock ends above its 50% downside threshold the payout at maturity will be par plus the coupon. Otherwise, investors will lose 1% for every 1% that the worst performing stock declines, payable in shares.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable yield notes
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| Underlying stocks: | General Motors Co., Micron Technology, Inc. and Bank of America Corp.
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| Amount: | $350,000
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| Maturity: | May 18, 2026
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| Coupon: | 12%, payable monthly
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| Price: | Par
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| Payout at maturity: | If worst performing stock finishes at or above its downside threshold level par; otherwise, 1% loss for every 1% that worst performing stock declines, payable in shares
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| Call: | Automatically at par if the level of the worst performing stock is greater than or equal to its initial level starting after one year and on any subsequent quarterly determination date
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| Initial levels: | $27.39 for BofA, $33.12 for GM, $61.61 for Micron
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| Downside thresholds: | $13.695 for BofA, $16.56 for GM, $30.805 for Micron; 50% of initial levels
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| Pricing date: | May 11, 2023
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| Settlement date: | May 16, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3%
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| Cusip: | 40428HWN8
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