Published on 2/27/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.29 million trigger callable contingent yield notes on EAFE, Stoxx
By William Gullotti
Buffalo, N.Y., Feb. 27 – HSBC USA Inc. priced $5.29 million of trigger callable contingent yield notes with daily coupon observation due Feb. 20, 2026 linked to the MSCI EAFE index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will bear interest at a 11.2% annual rate, paid quarterly if each index closes at or above its 70% coupon barrier on every trading day during the observation period.
The notes may be called at par of $10 plus any coupon otherwise due on any quarterly observation date after one year.
The payout at maturity will be par plus any final coupon otherwise due unless any index finishes below the downside threshold level, 70% of its initial level, in which case investors will lose 1% for every 1% loss of the worst performer 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: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Euro Stoxx 50 index, MSCI EAFE index
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| Amount: | $5,285,500
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| Maturity: | Feb. 20, 2026
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| Coupon: | 11.2% per year, paid quarterly if each index closes at or above its coupon barrier on every trading day during the observation period
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| Price: | Par of $10
|
| Payout at maturity: | Par plus any final coupon otherwise due unless any index finishes below downside threshold, in which case 1% loss for each 1% decline of worst performer from initial level
|
| Call option: | At par plus any coupon otherwise due on any quarterly observation date after one year
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| Initial index levels: | 2,087.04 for EAFE, 4,274.92 for Stoxx
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| Coupon barriers: | 1,460.93 for EAFE, 2,992.44 for Stoxx; 70% of initial levels
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| Downside thresholds: | 1,460.93 for EAFE, 2,992.44 for Stoxx; 70% of initial levels
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| Pricing date: | Feb. 17
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| Settlement date: | Feb. 23
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40441B199
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