Published on 3/23/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.54 million autocallable contingent income barrier notes on S&P, Russell
By William Gullotti
Buffalo, N.Y., March 23 – HSBC USA Inc. priced $1.54 million of autocallable contingent income barrier notes due June 24, 2024 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 9.9% if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any monthly coupon observation date after six months.
The payout at maturity will be par plus the final coupon unless any index finishes below its 75% trigger level, in which case investors will be fully exposed to the decline of that index from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $1,536,000
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Maturity: | June 24, 2024
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Coupon: | 9.9%, payable monthly if each index closes at or above coupon barrier on determination date for that period
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Price: | Par
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Payout at maturity: | If each index finishes at or above trigger level, par plus final coupon; otherwise, exposure to decline of worst performing index from initial level
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Call: | At par plus coupon if each index closes at or above initial price on any monthly call observation date after six months
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Initial levels: | 3,916.64 for S&P, 1,725.891 for Russell
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Barrier levels: | 2,937.48 for S&P, 1,294.41825 for Russell; 75% of initial levels
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Trigger levels: | 2,937.48 for S&P, 1,294.41825 for Russell; 75% of initial levels
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Pricing date: | March 17
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Settlement date: | March 22
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Agent: | HSBC Securities (USA) Inc.
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Fees: | None
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Cusip: | 40441XY61
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