Published on 9/18/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $625,000 17.66% autocallable contingent income barrier notes on stocks
Chicago, Sept. 18 – HSBC USA Inc. priced $625,000 of autocallable contingent income barrier notes due Sept. 3, 2024 linked to the least performing of the common stocks of Blackrock, Inc., NIKE, Inc. (class B) and Walt Disney Co., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 17.66%, paid quarterly, if each underlying stock closes at or above its 60% coupon barrier on the related quarterly observation date.
The securities will be called automatically starting on Nov. 30, 2022 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent quarterly 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: | Autocallable contingent income barrier notes
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| Underlying stocks: | Blackrock, Inc., NIKE, Inc. (class B) and The Walt Disney Co.
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| Amount: | $625,000
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| Maturity: | Sept. 3, 2024
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| Coupon: | 17.66% annual rate, paid quarterly, if each underlying stock closes at or above its 60% coupon barrier on the related quarterly 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 Nov. 30, 2022 at par if the level of the worst performing stock is greater than or equal to its initial level and on any subsequent quarterly observation date
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| Initial levels: | $672.72 for Blackrock, $112.43 for Disney, $107.86 for NIKE
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| Coupon barriers: | $403.632 for Blackrock, $67.458 for Disney, $64.716 for NIKE, 60% of initial levels
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| Barrier levels: | $336.36 for Blackrock, $56.215 for Disney, $53.93 for NIKE, 50% of initial levels
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| Pricing date: | Aug. 31, 2022
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| Settlement date: | Sept. 6, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40441XMB3
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