Published on 8/7/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $9 million 11.15% contingent income autocalls on indexes, ETF
New York, Aug. 7 – HSBC USA Inc. priced $9 million of contingent income autocallable securities due Aug. 7, 2024 linked to the iShares MSCI EAFE ETF, Nasdaq-100 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 11.15%, paid quarterly, if each underlier closes at or above its downside threshold on the related quarterly observation date.
Starting Nov. 2, the securities will be called automatically at par if each asset closes at or above its initial level on any quarterly review date.
At maturity the payout will be par unless the worst performing asset finishes below its principal barrier, 65% of its initial level, in which case investors will be fully exposed to the decline of the worst performing asset.
HSBC Securities is the agent. Morgan Stanley Wealth Management will act as placement agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying assets: | iShares MSCI EAFE ETF, Nasdaq-100 index and Russell 2000 index
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| Amount: | $9 million
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| Maturity: | Aug. 7, 2024
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| Coupon: | 11.15%, paid quarterly, if each underlier closes at or above its downside threshold on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par unless the worst performing asset finishes below its principal barrier, in which case investors will be fully exposed to the decline in the worst performing asset
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| Call: | Starting Nov. 2, automatically at par if each asset closes at or above initial level on any quarterly review date
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| Initial levels: | $72.16 for ETF, 15,370.74 for Nasdaq and 1,966.832 for Russell
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| Downside thresholds: | $50.512 for ETF, 10,759.518 for Nasdaq, 1,376.7824 for Russell, or 70% of initial levels
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| Principal barriers: | $46.904 for ETF, 9,990.981 for Nasdaq and 1,278.4408 for Russell, or 65% of initial levels
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| Pricing date: | Aug. 2
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| Settlement date: | Aug. 7
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| Agent: | HSBC Securities
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 0%
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| Cusip: | 40447AJS4
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