Published on 8/31/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.74 million callable contingent income barrier notes on S&P, Russell
By William Gullotti
Buffalo, N.Y., Aug. 31 – HSBC USA Inc. priced $4.74 million of callable contingent income barrier notes due Aug. 24, 2026 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 9.4% if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par on any semiannual call observation date after one year.
The payout at maturity will be par plus the final coupon if each index finishes at or above its 70% barrier level.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable contingent income barrier notes
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $4,741,000
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Maturity: | Aug. 24, 2026
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Coupon: | 9.4%, payable semiannually if each index closes at or above trigger level on determination date for that period
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Price: | Par
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Payout at maturity: | If each index finishes at or above barrier level, par plus final coupon; otherwise, full exposure to decline of worst-performing index from initial level
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Call option: | At par on any semiannual call observation date after one year
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Initial levels: | 4,369.71 for S&P, 1,859.421 for Russell
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Trigger levels: | 3,058.797 for S&P, 1,301.5947 for Russell; 70% of initial levels
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Barrier levels: | 3,058.797 for S&P, 1,301.5947 for Russell; 70% of initial levels
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Pricing date: | Aug. 18
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Settlement date: | Aug. 23
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Agent: | HSBC Securities (USA) Inc.
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Fees: | None
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Cusip: | 40447AHA5
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