Published on 3/24/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.47 million autocallable contingent income barrier notes on three stocks
By Wendy Van Sickle
Columbus, Ohio, March 24 – HSBC USA Inc. priced $1.47 million of autocallable contingent income barrier notes due March 24, 2026 linked to Advanced Micro Devices, Inc., Amazon.com, Inc. and Blackstone Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 22.2% if each stock closes at or above its coupon barrier level, 60% of the initial level, on the determination date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial price on any quarterly observation date.
If the notes are not called and each stock finishes at or above its 60% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the losses of the least performing stock.
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: | Advanced Micro Devices, Inc., Amazon.com, Inc. and Blackstone Inc.
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| Amount: | $1,465,000
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| Maturity: | March 24, 2026
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| Coupon: | 22.2% annual rate, payable monthly if each stock closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of worst performing stock
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| Call: | Automatically at par plus the coupon if each stock closes at or above its initial price on any monthly observation date
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| Initial levels: | $95.93 for Advanced Micro, $100.61 forAmazon, $86.88 for Blackstone
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| Coupon barrier levels: | $57.558 for Advanced Micro, $60.366 forAmazon, $52.128 for Blackstone; 60% of initial prices
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| Barrier levels: | $57.558 for Advanced Micro, $60.366 forAmazon, $52.128 for Blackstone; 60% of initial prices
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| Pricing date: | March 21
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| Settlement date: | March 24
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40441X2H2
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