Published on 3/13/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $675,000 autocallable barrier notes linked to Russell, S&P
Chicago, March 13 – HSBC USA Inc. priced $675,000 of 0% autocallable barrier notes due May 20, 2027 linked to the lesser performing of the 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 after one year and on semiannual observation dates going forward at par plus a 12.9% annualized premium if the worst performing index closes above its initial value.
If the notes are not called because at least one index closes below its initial level, the payout will be par if both indexes close above their 60% barrier levels and 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
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| Underlying indexes: | Russell 2000 index and S&P 500 index
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| Amount: | $675,000
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| Maturity: | May 20, 2027
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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 its initial value, par plus 64.5% call premium; if worst performing index declines but finishes at or above its downside threshold level, par; 1% loss for every 1% that worst performing index declines if it finishes below its downside threshold level
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| Call: | Automatically starting after one year and on semiannual observation dates going forward at par plus a 12.9% annualized premium if the worst performing index closes above its initial value
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| Initial levels: | 1,840.298 for Russell, 4,088.85 for S&P
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| Downside threshold levels: | 1,104.1788 for Russell, 2,453.31 for S&P, 60% of initial levels
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| Pricing date: | May 17, 2022
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| Settlement date: | May 20, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.625%
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| Cusip: | 40439J5G6
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