Published on 5/30/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $800,000 callable contingent income barrier with memory on oil stocks
By Kiku Steinfeld
Chicago, May 30 – HSBC USA Inc. priced $800,000 of callable contingent income barrier notes with memory coupon due Jan. 24, 2025 linked to the least performing of the stocks of Chevron Corp., ConocoPhillips and Marathon Petroleum Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 20.75% if each stock closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period, plus any previously unpaid coupons.
The notes are callable at par plus the coupon on any monthly call observation date after three months.
If the notes are not called and each stock finishes at or above its 60% barrier value, the payout at maturity will be par. Otherwise, investors will receive a number of shares of worst performer equal to $1,000 divided by that stock’s initial level or the equivalent amount in cash at the option of the issuer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes with memory coupon
|
| Underlying stocks: | Chevron Corp., ConocoPhillips and Marathon Petroleum Corp.
|
| Amount: | $800,000
|
| Maturity: | Jan. 24, 2025
|
| Coupon: | 20.75% per year, payable monthly if each stock closes at or above coupon trigger on observation date for that period, plus any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above barrier level, par; otherwise, investors will receive a number of shares of worst performer equal to $1,000 divided by that stock’s initial level or cash equivalent at option of issuer
|
| Call: | At par plus coupon on any monthly call observation date after three months
|
| Initial levels: | $120.24 for Chevron, $180.49 for Conoco, $121.77 for Marathon
|
| Coupon triggers: | $84.168 for Chevron, $126.343 for Conoco, $85.239 for Marathon; 70% of initial levels
|
| Barrier levels: | $72.144 for Chevron, $108.294 for Conoco, $73.062 for Marathon; 60% of initial levels
|
| Pricing date: | Jan. 17, 2023
|
| Settlement date: | Jan. 25, 2023
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.1%
|
| Cusip: | 40428HUT7
|
|
|
|
|
© 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.
