Published on 7/19/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.11 million callable contingent income buffered notes on Russell, S&P
By Wendy Van Sickle
Columbus, Ohio, July 19 – HSBC USA Inc. priced $2.11 million of callable contingent income buffered securities due July 17, 2026 linked to the least performing of the Russell 2000 index and the S&P 500 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 10.1% per year if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date that period.
If each index finishes at or above its buffer level, 80% of its initial level, the payout at maturity will be par plus the final coupon.
If any index finishes below its downside threshold, investors will lose 1.25% for every 1% decline of the lesser performing index beyond 20%.
The notes will be callable quarterly at par after one year.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income buffered securities
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| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $2,106,000
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| Maturity: | July 17, 2026
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| Coupon: | 10.1% per year, payable monthly if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below buffer level, investors will lose 1.25% for every 1% decline of the lesser performing index beyond buffer
|
| Call option: | Callable quarterly at par after one year
|
| Initial levels: | 4,472.16 for S&P, 1,933.376 for Russell
|
| Coupon barrier/buffers: | 3,577.728 for S&P, 1,546.7008 for Russell, 80% of initial levels
|
| Pricing date: | July 12
|
| Settlement date: | July 17
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.1%
|
| Cusip: | 40447AGB4
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