Published on 4/20/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $5 million digital return notes linked to S&P 500
By William Gullotti
Buffalo, N.Y., April 20 – HSBC USA Inc. priced $5 million of 0% digital return notes due May 2, 2024 tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index finishes at or above 85% of its initial level, the payout at maturity will be par plus 9.1%.
Otherwise, investors will lose 1.1765% for each 1% decline of the index beyond the 15% buffer.
HSBC Securities (USA) Inc. is the agent. JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC are acting as placement agents.
Issuer: | HSBC USA Inc.
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Issue: | Digital return notes
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Underlying index: | S&P 500 index
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Amount: | $5 million
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Maturity: | May 2, 2024
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If the index gains or falls by not more than 15%, par plus 9.1%; otherwise, 1.1765% loss for each 1% decline of the index beyond 15%
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Initial level: | 4,137.64
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Downside threshold: | 85% of initial level
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Strike date: | April 14
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Pricing date: | April 17
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Settlement date: | April 20
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Agent: | HSBC Securities (USA) Inc.
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Placement agents: | JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC
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Fees: | 1%
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Cusip: | 40441X5G1
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