Published on 10/17/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3 million autocallable notes linked to index basket
By Wendy Van Sickle
Columbus, Ohio, Oct. 17 – HSBC USA Inc. priced $3 million of autocallable notes due Oct. 16, 2026 linked to the performance of a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index (40% weight), the Nikkei 225 index (25% weight), the FTSE 100 index (17.5% weight), the Swiss Market index (10% weight) and the S&P/ASX 200 index (7.5% weight).
The notes will be automatically called at par plus a 14.4% annualized call premium if the basket closes at or above its initial level on any annual valuation date.
If the basket finishes at or above its start level, the payout at maturity will be par plus the 43.2% final call premium.
Otherwise, investors will be fully exposed to the decline of the basket from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable notes
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| Underlying basket: | Euro Stoxx 50 | index (40% weight), Nikkei 225 index (25% weight), FTSE | 100 index (17.5% weight), Swiss Market index (10% weight) and S&P/ASX 200 index (7.5% weight)
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| Amount: | $3 million
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| Maturity: | Oct. 16, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus final applicable premium of 43.2% if basket finishes at or above start level; otherwise, 1% loss per 1% decline of the basket from initial level
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| Call: | Automatically at par plus a 14.4% annualized call premium if the basket closes at or above initial level on any annual valuation date
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| Initial level: | 4,205.230 for Stoxx, 31,746.53 for Nikkei, 7,628.21 for FTSE, 11,001.690 for Swis and 7,040.637 for S&P/ASX
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| Pricing date: | Oct. 10
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| Settlement date: | Oct. 13
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40443B619
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