Published on 8/18/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $710,000 20.5% autocallable contingent income barrier notes on stocks
Chicago, Aug. 18 – HSBC USA Inc. priced $710,000 of autocallable contingent income barrier notes due July 8, 2024 linked to the least performing of the common stocks of JPMorgan Chase & Co., Target Corp. and Exxon Mobil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 20.5% if all three stocks close above 60% of their initial values on the quarterly observation dates.
The securities will be called automatically starting on Jan. 4, 2023 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 60% 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.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | JPMorgan Chase & Co., Target Corp. and Exxon Mobil Corp.
|
| Amount: | $710,000
|
| Maturity: | July 8, 2024
|
| Coupon: | 20.5% annual rate, payable quarterly if all three stocks close above coupon barrier levels on related observation date
|
| Price: | Par
|
| 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
|
| Call: | Automatically starting on Jan. 4, 2023 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
|
| Initial levels: | $85.64 for Exxon, $112.61 for JPMorgan, $141.23 for Target
|
| Coupon barriers: | $51.384 for Exxon, $67.566 for JPMorgan, $84.738 for Target, 60% of initial levels
|
| Barrier levels: | $51.384 for Exxon, $67.566 for JPMorgan, $84.738 for Target, 60% of initial levels
|
| Pricing date: | June 30, 2022
|
| Settlement date: | July 8, 2022
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40428HTN2
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
