Published on 8/25/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.74 million 9.5% callable contingent income barrier notes on two indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 25 – HSBC USA Inc. priced $4.74 million of callable contingent income barrier notes due Aug. 24, 2026 linked to the Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a semiannual coupon of 9.5%. if each index closes at or above 70% of its initial level on the corresponding semiannual observation date.
The payout at maturity will be par if the worst performing index ends at or above its 70% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing index declines.
The securities may be called at par on any semiannual observation date after one year.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Callable contingent income barrier notes
|
Underlying indexes: | Russell 2000 index and S&P 500 index
|
Amount: | $4,741,000
|
Maturity: | Aug. 24, 2026
|
Coupon: | 9.5%, payable semiannually if each index closes at or above 70% of its initial level on the corresponding semiannual observation date
|
Price: | Par
|
Payout at maturity: | If worst performing index finishes at or above the barrier level, par; 1% loss for every 1% that worst performing index declines if it ends below barrier value
|
Call option: | On any semiannual observation date after one year at par
|
Initial levels: | 4,369.71 for S&P, 1,859.421 for Russell
|
Coupon barriers: | 3,058.797 for S&P, 1,301.5947 for Russell, 70% of initial levels
|
Barrier levels: | 3,058.797 for S&P, 1,301.5947 for Russell, 70% of initial levels
|
Pricing date: | Aug. 18
|
Settlement date: | Aug. 23
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 0%
|
Cusip: | 40447AHA5
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.