Published on 7/28/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $483,000 8.86% autocallable contingent income barrier notes on S&P 500
By Kiku Steinfeld
Chicago, July 28 – HSBC USA Inc. priced $483,000 of autocallable contingent income barrier notes due Feb. 24, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8.86%, paid quarterly, if the underlying index closes at or above its 75% coupon barrier on the related quarterly observation date.
The payout at maturity will be par if the index ends at or above its 70% barrier value. Otherwise investors will lose 1% for every 1% that the index declines.
The securities will be called automatically starting Feb. 21, 2024 at par on any quarterly observation date if the index closes at or above its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying index: | S&P 500 index
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Amount: | $483,000
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Maturity: | Feb. 24, 2028
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Coupon: | 8.86%, paid quarterly, if the underlying index closes at or above its 75% coupon barrier on the related quarterly observation date
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Price: | Par
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Payout at maturity: | If index finishes at or above the barrier level par; 1% loss for every 1% that index declines if it ends below barrier value
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Call: | Automatically starting Feb. 21, 2024 at par on any quarterly observation date if the index closes at or above its initial level
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Initial level: | 3,997.34
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Coupon barrier: | 2,998.005, 75% of initial level
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Barrier level: | 2,798.138, 70% of initial level
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Pricing date: | Feb. 21, 2023
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Settlement date: | Feb. 24, 2023
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40441XQ86
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