Published on 9/25/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $910,000 23.79% callable contingent income barrier notes linked to stocks
Chicago, Sept. 25 – HSBC USA Inc. priced $910,000 of callable contingent income barrier notes due Sept. 23, 2024 linked to the least performing of the common stocks of Amazon.com, Inc., Costco Wholesale Corp., Target Corp. and Walmart Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 23.79%, 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 Dec. 23, 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., Target Corp. and Walmart Inc.
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| Amount: | $910,000
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| Maturity: | Sept. 23, 2024
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| Coupon: | 23.79% 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 Dec. 23, 2022 and on any subsequent monthly observation date
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| Initial levels: | $122.19 for Amazon, $499.52 for Costco Wholesale, $160.03 for Target, $133.55 for Walmart
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| Coupon barriers: | $85.533 for Amazon, $349.664 for Costco, $112.021 for Target, $93.485 for Walmart, 70% of initial levels
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| Barrier levels: | $61.095 for Amazon, $249.76 for Costco, $80.015 for Target, $66.775 for Walmart, 50% of initial levels
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| Pricing date: | Sept. 20, 2022
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| Settlement date: | Sept. 23, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.8%
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| Cusip: | 40441XNH9
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