Published on 6/2/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.7 million barrier participation notes with call feature on S&P, Russell
By William Gullotti
Buffalo, N.Y., June 2 – HSBC USA Inc. priced $1.7 million of 0% barrier participation notes with call feature due May 5, 2025 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus 13% if each index closes at or above its initial level on May 1, 2024.
If the notes are not called and each index finishes at or above its initial level, the payout at maturity will be par plus 200% of the return of the least performing index.
If any index falls but each index finishes at or above its 70% barrier level, the payout will be par.
Otherwise, investors will be fully exposed to the 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: | Barrier participation notes with call feature
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Underlying indexes: | Russell 2000 index, S&P 500 index
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Amount: | $1,698,000
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Maturity: | May 5, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If each index finishes at or above initial level, par plus 200% of lowest performer’s return; if any index falls but each finish at or above barrier level, par; otherwise, investors will be fully exposed to the decline of the least performing index from its initial level
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Call: | Automatically at par plus 13% if each index closes at or above its initial level on May 1, 2024
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Initial levels: | 1,768.987 for Russell, 4,169.48 for S&P
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Barrier levels: | 70% of initial levels
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Pricing date: | April 28
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Settlement date: | May 3
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40441X2U3
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