Published on 8/14/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.98 million callable contingent income barrier notes with memory on S&P
Chicago, Aug. 14 – HSBC USA Inc. priced $3.98 million of callable contingent income barrier notes with memory coupon due July 31, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8.3%, paid monthly, if the underlying index closes at or above its 70% barrier level on the related monthly observation date, plus any previously unpaid coupons.
The securities may be called at par starting on Jan. 31, 2024 and on any subsequent monthly 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.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes with memory coupon
|
| Underlying index: | S&P 500 index
|
| Amount: | $3,978,000
|
| Maturity: | July 31, 2025
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| Coupon: | 8.3% annual rate, paid monthly, if the underlying index closes at or above its 70% barrier level on the related monthly observation date, plus any previously unpaid coupons
|
| Price: | Par
|
| 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
|
| Call: | At par starting on Jan. 31, 2024 and on any subsequent monthly observation date at issuer’s option
|
| Initial level: | 4,566.75
|
| Coupon barrier: | 3,196.725, 70% of initial level
|
| Barrier level: | 3,196.725, 70% of initial level
|
| Pricing date: | July 26
|
| Settlement date: | July 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40447AGQ1
|
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