By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $2.55 million of 0% autocallable buffered notes with step-up premium and upside participation due April 5, 2027 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an 11.2% annualized premium if the indexes close at or above the call threshold on any quarterly call observation date starting March 31, 2023. The call threshold will be 100% of each index’s initial level.
The payout will be par plus any gain of the lesser-performing index. The payout will be par if either index falls but not below 90% of its initial level, in which case investors will lose 1% for every 1% decline of the lesser performing index beyond 10%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable buffered notes with step-up premium and upside participation
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Underlying index: | S&P 500 index and Russell 2000 index
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Amount: | $2.55 million
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Maturity: | April 5, 2027
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Coupon: | 0%
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Price: | Par
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Call: | At par plus an 11.2% annualized premium if each index closes at or above the call threshold on any quarterly call observation date starting March 31, 2023; call threshold will be 100% of the initial level
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Payout at maturity: | Par plus any gain of least performing index; par if either index falls but not below buffer; otherwise, 1% loss for every 1% decline of the lesser performing index beyond 10%
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Initial levels: | 2,070.125 for Russell, 4,530.41 for S&P
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Buffer levels: | 90% of initial levels
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Pricing date: | March 31
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Settlement date: | April 5
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40439JL45
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