Published on 5/18/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $120,000 autocallable contingent income barrier notes on three indexes
By Kiku Steinfeld
Chicago, May 18 – HSBC USA Inc. priced $120,000 of autocallable contingent income barrier notes due July 19, 2024 linked to the least performing of the S&P 500 index, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 8.1% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any monthly coupon observation date after three months.
The payout at maturity will be par plus the final coupon unless any index finishes below its 70% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index, Nasdaq-100 index, Russell 2000 index
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| Amount: | $120,000
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| Maturity: | July 19, 2024
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| Coupon: | 8.1%, payable monthly if each index closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par plus final coupon; otherwise, exposure to decline of worst-performing index from its initial level
|
| Call: | At par plus coupon if each index closes at or above initial level on any monthly call observation date after three months
|
| Initial levels: | 3,999.09 for S&P, 1,887.034 for Russell, 11,541.48 for Nasdaq
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| Barrier levels: | 2,799.363 for S&P, 1,320.9238 for Russell, 8,079.036 for Nasdaq; 70% of initial levels
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| Trigger levels: | 2,799.363 for S&P, 1,320.9238 for Russell, 8,079.036 for Nasdaq; 70% of initial levels
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| Pricing date: | Jan. 13, 2023
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| Settlement date: | Jan. 19, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40441XA91
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