Published on 12/11/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3 million autocallable notes linked to weighted index basket
By Wendy Van Sickle
Columbus, Ohio, Dec. 11 – HSBC USA Inc. priced $3 million of 0% autocallable notes due Dec. 9, 2026 linked to a weighted basket of indexes, according to a 424B2 filing with the Notes and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the Nikkei 225 index with a 25% weight, the FTSE 100 index with a 17.5% weight, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a 7.5% weight.
The notes will be called at par of $10 plus a premium of 13.3% per year if the basket closes at or above the initial level on any annual observation date.
If the notes are not called and the basket finishes at or above its initial level, the payout at maturity will be par plus 39.9%.
Investors will be fully exposed to any basket decline.
HSBC Notes (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable notes
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| Underlying indexes: | Euro Stoxx 50 index (40% weight), Nikkei 225 index (25% weight), FTSE 100 index (17.5% weight), Swiss Market index (10% weight), S&P/ASX 200 index (7.5% weight)
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| Amount: | $3 million
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| Maturity: | Dec. 9, 2026
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If notes are not called and basket finishes at or above initial level, par plus 39.9%; otherwise, full exposure to basket decline
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| Call: | Automatically at par plus 13.3% per year if basket closes at or above initial level on any annual observation date
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| Initial index levels: | 4,414.95 for Euro Stoxx 50, 33,231.27 for Nikkei 225, 7,512.96 for FTSE 100, 10,952.44 for Swiss Market, 7,124.654 for S&P/ASX 200
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| Pricing date: | Dec. 4
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| Settlement date: | Dec. 7
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| Agents: | HSBC Notes (USA) Inc. and UBS Financial Services Inc.
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| Fees: | 2%
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| Cusip: | 40443B445
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