Published on 7/20/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $432,000 9.72% callable contingent income barrier notes on three indexes
By Kiku Steinfeld
Chicago, July 20 – HSBC USA Inc. priced $432,000 of callable contingent income barrier notes due Feb. 23, 2026 linked to the Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a quarterly coupon of 9.72%. if each index closes at or above 70% of its initial level on the corresponding 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 may be called on any quarterly observation date.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $432,000
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| Maturity: | Feb. 23, 2026
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| Coupon: | 9.72%, payable quarterly if each index closes at or above 70% of its initial level on the corresponding 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
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| Call option: | Starting on any quarterly observation date
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| Initial levels: | 33,696.85 for Dow, 12,442.48 for Nasdaq, 1,942.212 for Russell
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| Coupon barriers: | 23,587.795 for Dow, 8,709.736 for Nasdaq, 1,359.5484 for Russell, 70% of initial levels
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| Barrier levels: | 20,218.11 for Dow, 7,465.488 for Nasdaq, 1,165.3272 for Russell, 60% of initial levels
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| Pricing date: | Feb. 16, 2023
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| Settlement date: | Feb. 22, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40441XN97
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