Published on 3/12/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $857,000 autocallable barrier notes with step-up premium on indexes
By Kiku Steinfeld
Chicago, March 12 – HSBC USA Inc. priced $857,000 of 0% autocallable barrier notes with step-up premium due July 3, 2028 linked to the S&P 500 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically at par plus 9.12% per year if the level of the worst performing index is greater than or equal to its corresponding call level on a quarterly observation date. The call level starts at 100% and drops by 1.875% each quarter.
The payout at maturity will be par plus 45.6% if the worst performing index finishes at or above its 70% 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 Russell 2000 index
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| Amount: | $857,000
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| Maturity: | July 3, 2028
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above barrier level, par plus 45.6%; 1% loss for every 1% that worst performing index declines if it ends below the barrier level
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| Initial levels: | 1,858.709 for Russell 2000, 4,376.86 for S&P 500
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| Barrier levels: | 1,301.0963 for Russell 2000, 3,063.802 for S&P 500, 70% of initial level
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| Call: | Automatically at par plus 9.12% per year if the level of the worst performing index is greater than or equal to its corresponding call level on a quarterly observation date; call level starts at 100% and drops by 1.875% each quarter
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| Pricing date: | June 28, 2023
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| Settlement date: | July 3, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40447ADF8
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