Published on 10/27/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $49,000 autocallable barrier notes with step-up premium on index, ETFs
Chicago, Oct. 27 – HSBC USA Inc. priced $49,000 of 0% autocallable barrier notes with step-up premium due March 3, 2025 linked to the worst performing of the S&P 500 index, the Financial Select Sector SPDR fund and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each asset closes at or above its initial level on any semiannual observation date. The call premium is 13.5% per year.
If the notes are not called, the payout will be par unless any asset has finished below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing asset from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying assets: | S&P 500 index, Financial Select Sector SPDR fund, SPDR S&P Regional Banking ETF
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| Amount: | $49,000
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| Maturity: | March 3, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called, par unless any asset has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing asset from its initial level
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| Call: | At par plus a call premium if each asset closes at or above its initial level on any semiannual observation date; call premium is 13.5% per year
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| Initial levels: | 4,373.94 for index, $38.52 for financial, $74.28 for banking
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| Barrier levels: | 2,624.364 for index, $23.112 for financial, $44.568 for banking; 60% of initial levels
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| Pricing date: | Feb. 28
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| Settlement date: | March 3
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40439JZG3
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