Published on 10/19/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $650,000 autocallable barrier notes with step-up premium on Stoxx
By Kiku Steinfeld
Chicago, Oct. 19 – HSBC USA Inc. priced $650,000 of 0% autocallable barrier notes with step-up premium and digital upside return due March 31, 2028 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if the index closes at or above its initial level on any of four annual call observation dates. The call premium is 11.25% per year.
If the notes are not called and the index return is greater than 30%, the payout at maturity will be par plus the index return. If the index return is greater than zero but less than or equal to 30%, the payout will be par plus 30%. If the index return is less than or equal to zero but greater than or equal to negative 25%, the payout will be par. If the index return is less than negative 25%, investors will be fully exposed to the index’s decline from the initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-up premium and digital upside return
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Underlying index: | Euro Stoxx 50 index
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Amount: | $650,000
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Maturity: | March 31, 2028
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If index finishes at or above initial level, par plus greater of index return and 30%; if index falls below initial level but not below 75% barrier level, par; otherwise, full exposure to losses
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Call: | At par plus a call premium of 11.25% per year if index closes at or above its initial level on any of four annual call dates
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Initial index level: | 4,168.21
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Barrier level: | 75% of initial level
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Pricing date: | March 28, 2023
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Settlement date: | March 31, 2023
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.35%
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Cusip: | 40441X2N9
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