Published on 2/24/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.13 million autocallable contingent income barrier notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 24 – HSBC USA Inc. priced $1.13 million of autocallable contingent income barrier notes due Dec. 15, 2025 linked to the least performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7% if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly coupon observation date after six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above barrier level.
If the worst performer finishes below barrier level but not below its 65% trigger level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the lowest performing index from its initial level.
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 indexes: | Dow Jones industrial average, Nasdaq-100 index, Russell 2000 index
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| Amount: | $1,133,000
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| Maturity: | Dec. 15, 2025
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| Coupon: | 7%, payable quarterly if each index closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus final coupon; if worst performer finishes below barrier level but at or above trigger level, par; otherwise, exposure to decline of worst performing index from initial level
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after six months
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| Initial levels: | 33,826.69 for Dow, 1,946.356 for Russell, 12,358.18 for Nasdaq
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| Barrier levels: | 23,678.683 for Dow, 1,362.4492 for Russell, 8,650.726 for Nasdaq; 70% of initial levels
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| Trigger levels: | 21,987.3485 for Dow, 1,265.1314 for Russell, 8,032.817 for Nasdaq; 65% of initial levels
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| Pricing date: | Feb. 17
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| Settlement date: | Feb. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40441XM23
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