Published on 4/11/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $612,000 autocallable contingent income buffered notes on Russell, Nasdaq
By Kiku Steinfeld
Chicago, April 11 – HSBC USA Inc. priced $612,000 of callable contingent income buffered securities due Sept. 22, 2025 linked to the least performing of the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 9.6% per year if each index closes at or above its coupon barrier level, 85% of its initial level, on the observation date for that period.
The notes will be automatically called at par if both indexes finish at or above their initial levels on any monthly autocall observation date after six months.
If each index finishes at or above its buffer level, 85% of its initial level, the payout at maturity will be par plus the final coupon.
If any index finishes below its buffer level, investors will lose 1% for every 1% decline of the lesser performing index beyond 15%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income buffered securities
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| Underlying indexes: | Nasdaq-100 index and Russell 2000 index
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| Amount: | $612,000
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| Maturity: | Sept. 22, 2025
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| Coupon: | 9.6% per year, payable monthly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
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| Payout at maturity: | Par if each index finishes at or above buffer level; if any index finishes below buffer level, investors will lose 1% for every 1% decline of the lesser performing index beyond buffer
|
| Call: | Automatically at par if both indexes close at or above initial levels on any monthly autocall observation date after six months
|
| Initial levels: | 11,084.59 for Nasdaq, 1,738.581 for Russell
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| Coupon barrier levels: | 9,421.9015 for Nasdaq, 1,477.79385 for Russell; 85% of initial levels
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| Buffer levels: | 9,421.9015 for Nasdaq, 1,477.79385 for Russell; 85% of initial levels
|
| Pricing date: | Dec. 19
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| Settlement date: | Dec. 22
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40441XWK2
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