Published on 10/31/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $459,000 contingent income barrier autocallables linked to Nasdaq, Russell
By Angela McDaniels
Tacoma, Wash., Oct. 31 – HSBC USA Inc. priced $459,000 of autocallable contingent income barrier notes with memory coupon due Dec. 4, 2023 linked to the Nasdaq-100 index and the Russell-2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 14.15% per year if each index closes at or above its coupon barrier level, 80% of its initial level, on observation date for that month. Any previously unpaid coupons will also be paid.
Beginning May 1, 2023, the notes will be called automatically at par if each index closes at or above its initial level on any monthly observation date.
The payout at maturity will be par unless the least-performing index finishes below its barrier level, 80% of its initial level, in which case investors will be exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying indexes: | Nasdaq-100 index and the Russell-2000 index
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| Amount: | $459,000
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| Maturity: | Dec. 4, 2023
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| Coupon: | 14.15% per year, payable monthly plus any previously unpaid coupons if each index closes at or above coupon barrier level on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless least-performing index finishes below barrier level, in which case exposure to decline of least-performing index
|
| Call: | Beginning May 1, 2023, automatically at par if each index closes at or above initial level on any monthly observation date
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| Initial levels: | 11,405.57 for Nasdaq and 1,846.863 for Russell
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| Coupon triggers: | 9,124.456 for Nasdaq and 1,477.4904 for Russell, or 80% of initial levels
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| Barrier levels: | 9,124.456 for Nasdaq and 1,477.4904 for Russell, or 80% of initial levels
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| Pricing date: | Oct. 31, 2022
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| Settlement date: | Nov. 3, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40441XQQ6
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