Published on 6/20/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.79 million autocallable contingent income barrier notes on two stocks
By Wendy Van Sickle
Columbus, Ohio, June 20 – HSBC USA Inc. priced $1.79 million of autocallable contingent income barrier notes due June 15, 2026 linked to Amazon.com, Inc. and McDonald's Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 11.5% if each stock closes at or above its coupon barrier level, 60% of the initial level, on the determination date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any monthly observation date starting after one year.
If the notes are not called and each stock finishes at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the losses of the least performing stock, payable as shares.
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: | Amazon.com, Inc. and McDonald's Corp.
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| Amount: | $1,792,000
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| Maturity: | June 15, 2026
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| Coupon: | 11.5% annual rate, payable monthly if each stock closes at or above coupon barrier level on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of worst performing stock
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| Call: | Automatically at par plus the coupon if each stock closes at or above its initial price on any monthly observation date starting after one year
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| Initial levels: | $126.57 for Amazon, $288.57 for McDonald's
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| Coupon barrier levels: | $75.942 for Amazon, $173.142 for McDonald's; 60% of initial prices
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| Barrier levels: | $75.942 for Amazon, $173.142 for McDonald's; 60% of initial prices
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| Pricing date: | June 12
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| Settlement date: | June 15
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.75%
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| Cusip: | 40447ACS1
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