Published on 8/2/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.89 million autocallable barrier notes with step-up premium on indexes
By Kiku Steinfeld
Chicago, Aug. 2 – HSBC USA Inc. priced $1.89 million of 0% autocallable barrier notes with step-up premium due Feb. 28, 2028 linked to the S&P 500 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 February 23, 2024 on any quarterly observation date at a premium of 9.5% per year if each index closes at or above 90% its initial level.
If the notes are not called, the payout at maturity will be par if the worst performing index loses no more than 25% of initial value. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below the 75% 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: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $1,885,000
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| Maturity: | Feb. 28, 2028
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par if the worst performing index loses no more than 25% of initial value; 1% loss for every 1% that worst performing index declines if it ends below the barrier level
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| Initial levels: | 33,045.09 for Dow, 1,894.675 for Russell, 3,991.05 for S&P
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| Barrier levels: | 24,783.8175 for Dow, 1,421.00625 for Russell, 2,993.2875 for S&P, 75% of initial level
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| Call: | Automatically starting on February 23, 2024 on any quarterly observation date at a premium of 9.5% per year if each index closes at or above 90% of its initial level
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| Pricing date: | Feb. 22, 2023
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| Settlement date: | March 1, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40441XM98
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