Published on 1/3/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $18.64 million autocallable market-linked step-up notes on S&P 500
By William Gullotti
Buffalo, N.Y., Jan. 3 – HSBC USA Inc. priced $18.64 million of 0% autocallable market-linked step-up notes due Dec. 29, 2025 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.
The notes will be called at par plus an annual call premium of 11.8% if the index closes at or above its initial level on any annual call date.
If the index finishes above the step-up value, 130% of the initial level, the payout at maturity will be par of $10 plus the index gain.
If the index finishes flat or gains by up to the step-up level, the payout will be par plus the step-up payment of 30%.
Investors will receive par if the index declines up to 10% and lose 1% for every 1% decline of the index beyond 10%.
BofA Securities, Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable market-linked step-up notes
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Underlying index: | S&P 500 index
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Amount: | $18,643,830
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Maturity: | Dec. 29, 2025
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If the index finishes above the step-up level, par plus the index gain; if the index finishes flat or gains up to the step-up level, par plus 30%; if the index declines up to 10%, par; otherwise, 1% loss for every 1% decline below 10%
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Call: | At par plus 11.8% per year if the index closes at or above its initial level on any annual observation date
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Initial level: | 3,822.39
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Step-up value: | 4,969.11; 130% of initial level
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Threshold level: | 3,440.15; 90% of initial level
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Pricing date: | Dec. 22
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Settlement date: | Dec. 30
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Underwriter: | BofA Securities, Inc.
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Fees: | 2%
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Cusip: | 40441B728
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