Published on 4/6/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.13 million autocallable contingent income barrier notes on Nasdaq, Russell
By Wendy Van Sickle
Columbus, Ohio, April 6 – HSBC USA Inc. priced $1.13 million of autocallable contingent income barrier notes with memory coupon due July 1, 2024 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.
Every month, the notes will pay a contingent coupon at an annual rate of 7.6% if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that period. Previously unpaid coupons will also be paid.
The notes will be called at par if each index closes at or above its initial level on any monthly call observation date after six months.
The payout at maturity will be par unless any index finishes below its 70% barrier level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory interest
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| Underlying indexes: | Nasdaq-100 and Russell 2000
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| Amount: | $1.13 million
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| Maturity: | July 1, 2024
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| Coupon: | 7.6% annual rate, payable monthly if each index closes at or above trigger level on determination date for that period; previously unpaid coupons will also be paid
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par; otherwise, full exposure to decline of worst-performing index
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| Call: | At par if each stock closes at or above initial price on any monthly call observation date after six months
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| Initial level: | 12,610.57 for Nasdaq, 1,752.632 for Russell
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| Trigger/barrier levels: | 8,827.399 for Nasdaq, 1,226.8424 for Russell, 70% of initial levels
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| Pricing date: | March 28
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| Settlement date: | March 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40441XW71
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