Published on 9/20/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $436,000 9.01% contingent income barrier autocalls on Starbucks
By Kiku Steinfeld
Chicago, Sept. 20 – HSBC USA Inc. priced $436,000 of autocallable contingent income barrier notes due March 10, 2025 linked to the common stock of Starbucks Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 9.01%, paid monthly, if the underlying stock closes at or above its 72% barrier level on the related monthly observation date.
The payout at maturity will be par if the stock ends at or above its 72% barrier value. Otherwise investors will lose 1% for every 1% that the stock declines, payable in shares or cash at option of issuer.
The securities will be called automatically starting Sept. 6, 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: | Starbucks Corp.
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| Amount: | $436,000
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| Maturity: | March 10, 2025
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| Coupon: | 9.01%, paid monthly, if the underlying stock closes at or above its 72% 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 option of issuer
|
| Call: | Automatically starting Sept. 6, 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: | $103.34
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| Coupon barrier: | $74.4048, 72% of initial level
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| Barrier level: | $74.4048, 72% of initial level
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| Pricing date: | March 7, 2023
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| Settlement date: | March 10, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40428HVH2
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