Published on 7/12/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $438,000 7.05% callable contingent income barrier notes on S&P, Dow
By Kiku Steinfeld
Chicago, July 12 – HSBC USA Inc. priced $438,000 of callable contingent income barrier notes due Feb. 17, 2026 linked to the S&P 500 index and Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a quarterly contingent coupon of 7.05% per year if each index closes at or above its 70% barrier level on the related observation date.
The payout at maturity will be par if the least performing index ends at or above its 70% barrier value. Otherwise investors will lose 1% for every 1% that the least performing index declines.
The securities will be called starting on Feb. 20, 2024 at par on any quarterly observation date.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable contingent income barrier notes
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Underlying indexes: | S&P 500 index and Dow Jones industrial average
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Amount: | $438,000
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Maturity: | Feb. 17, 2026
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Coupon: | 7.05% per year, paid quarterly if each index closes at or above its 70% barrier level on the related observation date
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Price: | Par
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Payout at maturity: | If least performing index finishes at or above the barrier level par; 1% loss for every 1% that least performing index declines if it ends below barrier value
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Call option: | Starting on Feb. 20, 2024 at par on any quarterly observation date
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Initial levels: | 4,090.46 for S&P, 33,869.27 for Dow
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Barrier levels: | 2,863.322 for S&P, 23,708.489 for Dow; 70% of initial levels
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Pricing date: | Feb. 10
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Settlement date: | Feb. 15
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40441XL57
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