Published on 12/20/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $211,000 autocallable barrier notes with step-up premium on sector funds
By Kiku Steinfeld
Chicago, Dec. 20 – HSBC USA Inc. priced $211,000 of 0% autocallable barrier notes with step-up premium due April 29, 2024 linked to the lesser performing of the Consumer Discretionary Select Sector SPDR fund, the Financial Select Sector SPDR fund and the Technology Select Sector SPDR fund, 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 premium is 19% per year.
If the notes are not called, the payout will be par unless any fund has finished below its 75% 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 funds: | Consumer Discretionary Select Sector SPDR fund, Financial Select Sector SPDR fund and Technology Select Sector SPDR fund
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| Amount: | $211,000
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| Maturity: | April 29, 2024
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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 fund has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing asset from its initial level
|
| Call: | At par plus a call premium if each fund closes at or above its initial level on any semiannual observation date; premium is 19% per year
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| Initial asset levels: | $168.13 for Consumer, $35.32 for Financial, $139.82 for Technology
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| Barrier levels: | $126.0975 for Consumer, $26.49 for Financial, $104.865 for Technology; 75% of initial levels
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| Pricing date: | April 26
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| Settlement date: | April 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.775%
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| Cusip: | 40439JQ99
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