Published on 4/26/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $63,000 autocallable barrier notes with step-up premium on three funds
Chicago, April 26 – HSBC USA Inc. priced $63,000 of 0% autocallable barrier notes with step-up premium due May 31, 2024 linked to the least performing of the Consumer Discretionary Select Sector SPDR fund, Financial Select Sector SPDR fund and Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on Nov. 25, 2022 and on any subsequent semiannual observation date at a premium of 19.5% per year if all three funds close above their call thresholds.
The payout at maturity will be par if the index finishes at or above its 75% barrier. Investors will lose 1% for every 1% that the index declines if it finishes below the barrier 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 index: | Consumer Discretionary Select Sector SPDR fund, Financial Select Sector SPDR fund and Technology Select Sector SPDR fund
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| Amount: | $63,000
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| Maturity: | May 31, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If index finishes at or above barrier level par; 1% loss for every 1% that index declines if it ends below the barrier level
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| Call: | Automatically starting on Nov. 25, 2022 and on any subsequent semiannual observation date at a premium of 19.5% per year if all three funds close above their initial levels
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| Initial levels: | $141.71 for consumer, $34.19 for financial, $133.62 for technology
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| Barrier levels: | $106.2825 for consumer, $25.6425 for financial, $100.215 for technology, 75% of initial levels
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| Pricing date: | May 25, 2022
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| Settlement date: | May 31, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.775%
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| Cusip: | 40439J2Y0
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