Published on 3/10/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $690,000 barrier autocalls with step-up premium and digital return on Stoxx
By Kiku Steinfeld
Chicago, March 11 – HSBC USA Inc. priced $690,000 of 0% autocallable barrier notes with step-up premium and digital upside return due June 30, 2028 linked to the Euro Stoxx 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 annual call observation date. The call premium is 10.7% per year.
If the notes are not called and the index return is greater than 30%, the payout 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 30%. If the index falls but by no more than 25%, the payout will be par. Otherwise, investors will be fully exposed to the decline of the index.
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 index
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Amount: | $690,000
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Maturity: | June 30, 2028
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If index return is greater than 30%, par plus the index return, if return is greater than zero but less than or equal to 30%, par plus 30%, if index falls but by no more than 25%, par; otherwise, full exposure to losses
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Call: | At par plus a call premium of 10.7% per year if index closes at or above its initial level on any annual call date
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Initial index level: | 4,305.26
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Pricing date: | June 27, 2023
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Settlement date: | June 30, 2023
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.35%
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Cusip: | 40447ADK7
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