Published on 8/29/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $475,000 26% callable contingent income barrier notes on four stocks
Chicago, Aug. 29 – HSBC USA Inc. priced $475,000 of callable contingent income barrier notes due Aug. 22, 2025 linked to the least performing of the common stocks of Amazon.com, Inc., Costco Wholesale Corp., Walmart Inc. and Target Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 26%, paid monthly, if each underlying stock closes at or above its 70% coupon barrier on the related monthly observation date.
The securities may be called at par starting on Nov. 22, 2022 and on any subsequent 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.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying stocks: | Amazon.com, Inc., Costco Wholesale Corp., Walmart Inc. and Target Corp.
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| Amount: | $475,000
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| Maturity: | Aug. 22, 2025
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| Coupon: | 26% annual rate, 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: | At par starting on Nov. 22, 2022 and on any subsequent monthly observation date at issuer’s option
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| Initial levels: | $142.10 for Amazon, $556.32 for Costco, $175.34 for Target, $139.52 for Walmart
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| Coupon barriers: | $99.47 for Amazon, $389.424 for Costco, $122.738 for Target, $97.664 for Walmart, 70% of initial levels
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| Barrier levels: | $71.05 for Amazon, $278.16 for Costco, $87.67 for Target, $69.76 for Walmart, 50% of initial levels
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| Pricing date: | Aug. 17, 2022
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| Settlement date: | Aug. 22, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40441XHR4
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