Published on 4/7/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.98 million autocallable buffered notes with step-up premium on indexes
Chicago, April 8 – HSBC USA Inc. priced $5.98 million of 0% autocallable buffered notes with step-up premium due Oct. 6, 2025 linked to the least performing of the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a 14.1% annualized premium if the indexes close at or above the call threshold on any semiannual call observation date. The call threshold will be 100% of each index’s initial level.
If the notes are not called, the payout will be par unless either index falls below 80% of its initial level, in which case investors will lose 1.25% for every 1% decline of the lesser performing index beyond 20%.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable buffered notes with step-up premium
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Underlying index: | Nasdaq-100 index and Russell 2000 index
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Amount: | $5,979,000
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Maturity: | Oct. 6, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If the notes are not called, par unless either index falls below 80% of its initial level, in which case investors will lose 1.25% for every 1% decline of the lesser performing index beyond 20%
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Call: | At par plus a 14.1% annualized premium if each index closes at or above the call threshold on any semiannual call observation date; call threshold will be 100% of the initial level
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Initial levels: | 18,293.20 for Nasdaq, 2,102.837 for Russell
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Buffer levels: | 14,634.56 for Nasdaq, 1,682.2696 for Russell; 80% of initial levels
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Strike date: | April 1
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Pricing date: | April 2
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Settlement date: | April 5
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 0.15%
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Cusip: | 40447AY32
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