Published on 10/8/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $774,000 17.5% contingent income barrier autocalls on stocks
By Kiku Steinfeld
Chicago, Oct. 9 – HSBC USA Inc. priced $774,000 of autocallable contingent income barrier notes due March 30, 2026 linked to the common stocks of Abbott Laboratories, LyondellBasell Industries NV and Emerson Electric Co., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 17.5%, paid monthly, if each underlying stock closes at or above its 70% coupon barrier on the related monthly observation date.
The payout at maturity will be par if the worst performing stock ends at or above its 50% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing stock declines.
The securities will be called automatically starting on March 26, 2024 at par if the level of the worst performing 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 stocks: | Abbott Laboratories, LyondellBasell Industries NV and Emerson Electric Co.
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| Amount: | $774,000
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| Maturity: | March 30, 2026
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| Coupon: | 17.5%, paid monthly, if each underlying stock closes at or above its 70% coupon barrier 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 March 26, 2024 at par if the level of the worst performing stock is greater than or equal to its initial level on a monthly observation date
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| Initial levels: | $97.04 for Abbott Laboratories, $83.10 for Emerson Electric, $85.74 for LyondellBasell Industries
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| Coupon barriers: | $67.928 for Abbott Laboratories, $58.17 for Emerson Electric, $60.018 for LyondellBasell Industries, 70% of initial levels
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| Barrier levels: | $48.52 for Abbott Laboratories, $41.55 for Emerson Electric, $42.87 for LyondellBasell Industries, 50% of initial levels
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| Pricing date: | March 23, 2023
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| Settlement date: | March 28, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40441X2J8
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