Published on 4/19/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.2 million autocallable barrier notes with step-up premium on Russell, S&P
By William Gullotti
Buffalo, N.Y., April 19 – HSBC USA Inc. priced $1.2 million of 0% autocallable barrier notes with step-up premium due April 18, 2028 linked to the lesser 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 be called at par plus a 10.5% annual call premium if each index closes at or above its initial level on any quarterly valuation date after six months.
If the notes are not called, the payout will be par unless any index has finished below its 75% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-up premium
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $1.2 million
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Maturity: | April 18, 2028
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless any index finishes below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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Call: | At par plus a 10.5% annual call premium if each index closes at or above its initial level on any quarterly valuation date after six months
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Initial index levels: | 4,146.22 for S&P, 1,796.683 for Russell
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Barrier levels: | 3,109.665 for S&P, 1,347.51225 for Russell; 75% of initial levels
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Pricing date: | April 13
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Settlement date: | April 18
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.85%
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Cusip: | 40441X4Y3
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