Published on 5/4/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.06 million autocallable barrier notes with step-up premium on Russell, S&P
Chicago, May 4 – HSBC USA Inc. priced $3.06 million of 0% autocallable barrier notes with step-up premium due April 30, 2026 linked to the lesser performing of the S&P 500 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 10.85% annual call premium if each index closes at or above its call level on any annual observation date. The call level is initially the starting level, then 95% in year two and 90% in year three.
If the notes are not called, the payout will be par if the worst performer declines more than 10% but not more than 30%. Otherwise, investors will lose 1% for each 1% decline of the least-performing index from its initial 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: | S&P 500 index, Russell 2000 index
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| Amount: | $3,056,000
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| Maturity: | April 30, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called, par if worst performer declines more than 10% but not more than 30%; otherwise, full exposure to losses of worst performer
|
| Call: | At par plus a 10.85% annual call premium if each index closes at or above its call level on any annual valuation date; call level starts at initial level, declines to 95% in year two and moves to 90% for final date
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| Initial index levels: | 4,071.63 for S&P, 1,745.952 for Russell
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| Barrier levels: | 2,850.141 for S&P, 1,222.1664 for Russell; 70% of initial levels
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| Pricing date: | April 25
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| Settlement date: | April 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40441X4Q0
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