Published on 7/12/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $746,000 6.8% autocallable contingent income barrier notes on indexes
By Kiku Steinfeld
Chicago, July 12 – HSBC USA Inc. priced $746,000 of autocallable contingent income barrier notes due Aug. 15, 2024 linked to the S&P 500 index, Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 6.8%, paid quarterly, if each underlying index closes at or above its 70% coupon barrier on the related quarterly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 60% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing index declines.
The securities will be called automatically starting on Feb. 12, 2024 at par if the level of the worst performing index is greater than or equal to its initial level on any quarterly observation date.
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, Russell 2000 index and Nasdaq-100 index
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| Amount: | $746,000
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| Maturity: | Aug. 15, 2024
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| Coupon: | 6.8%, paid quarterly, if each underlying index closes at or above its 70% coupon barrier on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above the barrier level par; 1% loss for every 1% that worst performing index declines if it ends below barrier value
|
| Call: | Automatically starting on Feb. 12, 2024 at par if the level of the worst performing index is greater than or equal to its initial level on any quarterly observation date
|
| Initial levels: | 12,304.92 for Nasdaq, 1,918.814 for Russell, 4,090.46 for S&P
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| Coupon barriers: | 8,613.444 for Nasdaq, 1,343.1698 for Russell, 2,863.322 for S&P, 70% of initial levels
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| Barrier levels: | 7,382.952 for Nasdaq, 1,151.2884 for Russell, 2,454.276 for S&P, 60% of initial levels
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| Pricing date: | Feb. 10
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| Settlement date: | Feb. 15
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40441XM80
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