Published on 3/19/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.21 million autocallable barrier notes with step-up premium on indexes
Chicago, March 19 – HSBC USA Inc. priced $2.21 million of 0% autocallable barrier notes with step-up premium due March 6, 2029 linked to the least performing of the Dow Jones industrial average, Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on March 3, 2025 if the level of the worst performing index is greater than or equal to 95% of its initial level and on any subsequent semiannual observation date at a premium of 11% per year.
The maturity date premium is 55%.
The payout at maturity will be par if the worst performing index declines more than 5% but finishes at or above its 75% 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: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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Amount: | $2,208,000
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Maturity: | March 6, 2029
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 55% if called; if worst performing index declines more than 5% but 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 starting on March 3, 2025 if the level of the worst performing index is greater than or equal to 95% of its initial level and on any subsequent semiannual observation date at a premium of 11% per year
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Initial levels: | 39,087.38 for Dow, 2,076.395 for Russell, 5,137.08 for S&P
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Barrier levels: | 29,315.535 for Dow, 1,557.29625 for Russell, 3,852.81 for S&P, 75% of initial levels
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Pricing date: | March 1
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Settlement date: | March 6
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40447AD43
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