Published on 2/20/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $9 million 10.2% contingent income callable securities on indexes, ETF
New York, Feb. 20 – HSBC USA Inc. priced $9 million of contingent income callable securities due Aug. 18, 2025 linked to the iShares MSCI EAFE ETF, Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.2%, paid quarterly, if each underlier closes at or above its 70% coupon barrier on the related quarterly observation date.
The securities may be called starting May 13 at par on any quarterly call determination date.
If the worst performing asset gains or ends above its 65% downside threshold the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the worst performing asset declines if it finishes below its downside threshold level.
HSBC Securities is the agent. Morgan Stanley Wealth Management will act as placement agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income callable securities
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| Underlying assets: | iShares MSCI EAFE ETF, Russell 2000 index and S&P 500 index
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| Amount: | $9 million
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| Maturity: | Aug. 18, 2025
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| Coupon: | 10.2%, paid quarterly, if each underlier closes at or above its coupon barrier on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | If worst performing asset finishes at or above its downside threshold level, par; 1% loss for every 1% that worst performing asset declines if it finishes below its downside threshold level
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| Call: | Starting May 13 at par on any quarterly call determination date
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| Initial levels: | $74.27 for ETF, 1,964.174 for Russell, 4,953.17 for S&P
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| Coupon barriers: | $51.989 for ETF, 1,374.9218 for Russell, 3,467.219 for S&P, 70% of initial levels
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| Downside thresholds: | $48.2755 for ETF, 1,276.7131 for Russell, 3,219.5605 for S&P, 65% of initial levels
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| Pricing date: | Feb. 13
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| Settlement date: | Feb. 16
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| Agent: | HSBC Securities
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 0%
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| Cusip: | 40447AC51
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