Published on 4/7/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.07 million contingent income barrier autocalls with memory on stocks
New York, April 8 – HSBC USA Inc. priced $3.07 million of autocallable contingent income barrier notes with memory coupon due March 29, 2027 linked to the stock performance of Amazon.com, Inc., Micron Technology, Inc. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 15.66%, 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 securities will be called automatically at par if the closing level of the worst performing stock is greater than or equal to its initial level on any monthly observation date starting on March 26, 2025.
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.
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: | Amazon.com, Inc., Micron Technology, Inc. and Alphabet Inc.
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| Amount: | $3,071,000
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| Maturity: | March 29, 2027
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| Coupon: | 15.66%, 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
|
| Price: | Par
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| Payout at maturity: | If worst performing stock finishes at or above the barrier level, par; otherwise, 1% loss for every 1% that worst performing stock declines from initial level
|
| Call: | Automatically at par if the closing level of the worst performing stock is greater than or equal to its initial level on any monthly observation date starting on March 26, 2025
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| Initial levels: | $178.87 for Amazon.com, $151.77 for Alphabet, $110.21 for Micron Technology
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| Coupon barriers: | $107.322 for Amazon.com, $91.062 for Alphabet, $66.126 for Micron Technology, 60% of initial levels
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| Barrier levels: | $107.322 for Amazon.com, $91.062 for Alphabet, $66.126 for Micron Technology, 60% of initial levels
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| Pricing date: | March 22
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| Settlement date: | March 27
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40447AP73
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