New Issue: HSBC prices $4.18 million autocallable barrier notes with step-up premium on indexes

By Kiku Steinfeld

Chicago, Aug. 2 – HSBC USA Inc. priced $4.18 million of 0% autocallable barrier notes with step-up premium due Feb. 26, 2026 linked to the S&P 500 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called automatically starting on February 29, 2024 and on any annual observation date at a premium of 13.40% per year if each index closes at or above its initial level.

The payout at maturity will be par if the worst performing index finishes at or above its 80% 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.
Issue:	Autocallable barrier notes with step-up premium
Underlying indexes:	S&P 500 index and Russell 2000 index
Amount:	$4,176,000
Maturity:	Feb. 26, 2026
Coupon:	0%
Price:	Par
Payout at maturity:	If 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
Initial levels:	1,894.675 for Russell, 3,991.05 for S&P
Barrier levels:	1,515.74 for Russell, 3,192.84 for S&P, 80% of initial levels
Call:	Automatically starting on February 29, 2024 on any annual observation date at a premium of 13.40% per year if each index closes at or above its initial level
Pricing date:	Feb. 22, 2023
Settlement date:	Feb. 27, 2023
Agent:	HSBC Securities (USA) Inc.
Fees:	2.25%
Cusip:	40441XQ29

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.