Published on 10/12/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $327,000 autocallable barrier notes with step-up premium on indexes
By Kiku Steinfeld
Chicago, Oct. 12 – HSBC USA Inc. priced $327,000 of 0% autocallable barrier notes with step-up premium due March 29, 2027 linked to the Dow Jones industrial average and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically on any annual observation date at a premium of 11.45% per year if each index closes at or above 105% of its initial level.
The payout at maturity will be par if 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: | Dow Jones industrial average and S&P 500 index
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Amount: | $327,000
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Maturity: | March 29, 2027
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If worst performing index 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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Initial levels: | 32,237.53 for Dow Jones industrial average, 3,970.99 for S&P 500
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Barrier levels: | 22,566.271 for Dow Jones industrial average, 2,779.693 for S&P 500, 70% of initial level
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Call: | Automatically on any annual observation date at a premium of 11.45% per year if each index closes at or above 105% of its initial level
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Pricing date: | March 24, 2023
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Settlement date: | March 29, 2023
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40441XX54
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