Published on 5/22/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $523,000 autocallable barrier notes with step-up premium on indexes
Chicago, May 22 – HSBC USA Inc. priced $523,000 of 0% autocallable barrier notes with step-up premium due June 30, 2025 linked to the least performing of the Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on Dec. 27, 2022 and on any subsequent semiannual observation date at a premium of 12.9% per year if all three indexes close above their initial levels.
If the notes are not called because at least one of the indexes has closed below its initial level, the payout at maturity will be par if the worst performing index finishes at or above its 70% barrier. 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 with step-up premium
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $523,000
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| Maturity: | June 30, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called and worst performing index finishes at or above barrier level par; 1% loss for every 1% that worst performing index declines if it ends below the barrier level
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| Call: | Automatically starting on Dec. 27, 2022 and on any subsequent observation date at a premium of 12.9% per year if all three indexes close above their initial levels
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| Initial levels: | 31,438.26 for Dow, 12,008.24 for Nasdaq, 1,771.742 for Russell
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| Barrier levels: | 22,006.782 for Dow, 8,405.768 for Nasdaq, 1,240.2194 for Russell, 70% of initial levels
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| Pricing date: | June 27, 2022
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| Settlement date: | June 30, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40439J6Z3
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