Published on 10/12/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $560,000 autocallable barrier notes with step-up premium on indexes
Chicago, Oct. 12 – HSBC USA Inc. priced $560,000 of 0% autocallable barrier notes with step-up premium due Oct. 6, 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 Oct. 3, 2023 and on any subsequent semiannual observation date at a premium of 17% per year if all three indexes close above their initial levels.
The maturity date premium is 51%.
If the notes have not been called, 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: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $560,000
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Maturity: | Oct. 6, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 51% if called; 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 Oct. 3, 2023 and on any subsequent observation date at a premium of 17% per year
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Initial levels: | 28,725.51 for Dow, 10,971.22 for Nasdaq, 1,664.716 for Russell
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Barrier levels: | 20,107.857 for Dow, 7,679.854 for Nasdaq, 1,165.3012 for Russell, 70% of initial levels
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Pricing date: | Sept. 30, 2022
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Settlement date: | Oct. 5, 2022
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.5%
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Cusip: | 40441XKL3
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