Published on 1/10/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $909,000 callable yield notes on S&P, Russell, Nasdaq
By Kiku Steinfeld
Chicago, Jan. 10 – HSBC USA Inc. priced $909,000 of callable yield notes due April 29, 2024 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a 12.6% coupon monthly.
The notes will be callable at par on any quarterly observation date starting after six months.
The payout at maturity will be par unless any index finishes below its initial level and has ever closed below its 70% threshold level, in which case investors will be fully exposed to the losses of the worst performing index.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable yield notes
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Underlying indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
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Amount: | $909,000
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Maturity: | April 29, 2024
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Coupon: | 12.6% annual rate, payable monthly
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Price: | Par
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Payout at maturity: | Par unless any index finishes below its initial level and has ever closed below its 70% threshold level, in which case, 1% loss for each 1% decline of worst performing index
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Call option: | At par on any quarterly observation date after six months
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Initial levels: | 13,000.77 for Nasdaq, 1,791.506 for Russell, 4,133.52 for S&P
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Downside thresholds: | 9,100.539 for Nasdaq, 1,254.0542 for Russell, 2,893.464 for S&P, 70% of initial levels
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Pricing date: | April 21, 2023
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Settlement date: | April 28, 2023
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Selling agent: | HSBC Securities (USA) Inc.
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Fees: | 0.1%
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Cusip: | 40441X5T3
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