Published on 1/8/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $573,000 autocallable barrier notes with step-up premium on S&P, Dow
By Kiku Steinfeld
Chicago, Jan. 8 – HSBC USA Inc. priced $573,000 of 0% autocallable barrier notes with step-up premium due May 1, 2026 linked to the least performing of the S&P 500 index and Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically on any semiannual observation date at a premium of 11.45% per year if both indexes close above their initial levels.
If the notes have not been called because at least one index has finished below its initial level, the payout at maturity will be par if each index finishes at or above its 60% 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: | S&P 500 index and Dow Jones industrial average
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| Amount: | $573,000
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| Maturity: | May 1, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus final call premium of 34.35% if both indexes close above initial values; if each 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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| Call: | Automatically on any semiannual observation date at a premium of 11.45% per year if both indexes close above initial levels
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| Initial levels: | 4,055.99 for S&P, 33,301.87 for Dow
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| Barrier levels: | 2,433.594 for S&P, 19,981.122 for Dow, 60% of initial levels
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| Pricing date: | April 26, 2023
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| Settlement date: | April 26, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40441X5W6
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