Published on 10/2/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $181,000 autocallable barrier notes with step-up premium on indexes
Chicago, Oct. 2 – HSBC USA Inc. priced $181,000 of 0% autocallable barrier notes with step-up premium due Sept. 30, 2025 linked to the least performing of the Nasdaq-100 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 March 27, 2023 and on any subsequent semiannual observation date at a premium of 14.1% per year if all three indexes close above initial levels.
The maturity date premium is 42.3%.
The payout at maturity will be par if the worst performing index declines but 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: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $181,000
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| Maturity: | Sept. 30, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 42.3% maturity date premium if all three indexes finish 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 March 27, 2023 and on any subsequent semiannual observation date at a premium of 14.1% per year if all three indexes close above their initial levels
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| Initial levels: | 29,134.99 for Dow, 11,271.75 for Nasdaq, 1,662.509 for Russell
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| Barrier levels: | 20,394.493 for Dow, 7,890.225 for Nasdaq, 1,163.7563 for Russell, 70% of initial levels
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| Pricing date: | Sept. 27, 2022
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| Settlement date: | Sept. 30, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40441XKM1
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