Published on 7/21/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.72 million 7.65% autocallable yield notes linked to S&P, Russell
Chicago, July 21 – HSBC USA Inc. priced $6.72 million of autocallable yield notes due Jan. 17, 2025 linked to the least performing of the S&P 500 index and Russell 2000 index,, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 7.65%, paid semiannually.
The securities will be called automatically starting on Jan. 11, 2024 and on any subsequent semiannual determination date if each index closes above its initial level.
If the worst performing index ends above its 75% downside threshold the payout at maturity will be par plus the coupon. Otherwise, investors will lose 1.3333% for every 1% that the worst performing index declines beyond the 25% buffer.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable yield notes
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Underlying indexes: | S&P 500 index and Russell 2000 index
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Amount: | $6,718,000
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Maturity: | Jan. 17, 2025
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Coupon: | 7.65% annual rate, paid semiannually
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Price: | Par
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Payout at maturity: | If worst performing index finishes at or above its downside threshold level par; otherwise, 1.3333% loss for every 1% that worst performing index declines beyond 25% buffer
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Call: | Automatically at par starting on Jan. 11, 2024 and on any subsequent semiannual determination date
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Initial levels: | 1,933.376 for Russell, 4,472.16 for S&P
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Downside thresholds: | 1,450.032 for Russell, 3,354.12 for S&P, 75% of initial level
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Pricing date: | July 12
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Settlement date: | July 18
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.05%
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Cusip: | 40447AGD0
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