Published on 10/19/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $650,000 autocallable barrier notes with step-up premium on Stoxx
By Kiku Steinfeld
Chicago, Oct. 19 – HSBC USA Inc. priced $650,000 of 0% autocallable barrier notes with step-up premium and digital upside return due March 31, 2028 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if the index closes at or above its initial level on any of four annual call observation dates. The call premium is 11.25% per year.
If the notes are not called and the index return is greater than 30%, the payout at maturity will be par plus the index return. If the index return is greater than zero but less than or equal to 30%, the payout will be par plus 30%. If the index return is less than or equal to zero but greater than or equal to negative 25%, the payout will be par. If the index return is less than negative 25%, investors will be fully exposed to the index’s decline from the initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium and digital upside return
|
| Underlying index: | Euro Stoxx 50 index
|
| Amount: | $650,000
|
| Maturity: | March 31, 2028
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above initial level, par plus greater of index return and 30%; if index falls below initial level but not below 75% barrier level, par; otherwise, full exposure to losses
|
| Call: | At par plus a call premium of 11.25% per year if index closes at or above its initial level on any of four annual call dates
|
| Initial index level: | 4,168.21
|
| Barrier level: | 75% of initial level
|
| Pricing date: | March 28, 2023
|
| Settlement date: | March 31, 2023
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.35%
|
| Cusip: | 40441X2N9
|
|
|
|
|
© 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.
