Published on 10/10/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $857,000 callable contingent income barrier notes linked to car stocks
By Angela McDaniels
Tacoma, Wash., Oct. 10 – HSBC USA Inc. priced $857,000 of callable contingent income barrier notes due Sept. 29, 2025 linked to the least performing of the common stock of Tesla, Inc., Ford Motor Co. and General Motors Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 44.48% per year if each stock closes at or above its coupon trigger level, 70% of its initial share price, on the observation date for that month.
Beginning Dec. 23, 2022, the notes are callable at par monthly.
The payout at maturity will be par unless the least performing stock finishes below its barrier level, 50% of its initial share price, in which case investors will be exposed to the least performing stock’s decline from its initial share price.
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: | Tesla, Inc., Ford Motor Co. and General Motors Co.
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| Amount: | $857,000
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| Maturity: | Sept. 29, 2025
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| Coupon: | 44.48%, payable monthly if each stock closes at or above coupon trigger level on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless least performing stock finishes below barrier level, in which case exposure to least performing stock’s decline from initial share price
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| Call option: | Beginning Dec. 23, 2022, notes are callable at par monthly
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| Initial share prices: | $275.33 for Tesla, $12.31 for Ford and $35.48 for GM
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| Coupon barrier levels: | $192.731 for Tesla, $8.617 for Ford and $24.836 for GM, 70% of initial share prices
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| Barrier levels: | $137.665 for Tesla, $6.155 for Ford and $17.74 for GM, 50% of initial share prices
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| Pricing date: | Sept. 23, 2022
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| Settlement date: | Sept. 28, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40441XNN6
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