Published on 9/11/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.1 million autocallable barrier notes with step-up premium on indexes
Chicago, Sept. 11 – HSBC USA Inc. priced $1.1 million of 0% autocallable barrier notes with step-up premium due Aug. 31, 2028 linked to the least performing of the S&P 500 index, Russell 2000 index and Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on August 28, 2024 and on any subsequent semiannual observation date at a premium of 8.45% per year if each index closes above its initial level.
The maturity date premium is 42.25%.
The payout at maturity will be par if the notes are not called but the worst performing index finishes at or above its 70% barrier. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below the barrier level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-up premium
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Underlying indexes: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $1.1 million
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Maturity: | Aug. 31, 2028
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 42.25% final premium if notes are called because all have finished above initial levels; if worst performing index declines but finishes at or above barrier level par; 1% loss for every 1% that worst performing index declines if it ends below the barrier level
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Call: | Automatically starting on August 28, 2024 and on any subsequent semiannual observation date at a premium of 8.45% per year if all three indexes close above initial levels on related observation date
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Initial levels: | 34,559.98 for Dow, 1,869.007 for Russell, 4,433.31 for S&P
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Barrier levels: | 24,191.986 for Dow, 1,308.3049 for Russell, 3,103.317 for S&P, 70% of initial levels
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Pricing date: | Aug. 28
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Settlement date: | Aug. 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40447AHM9
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