Published on 8/21/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $500,000 autocallable barrier notes with step-up premium on indexes
Chicago, Aug. 21 – HSBC USA Inc. priced $500,000 of 0% autocallable barrier notes with step-up premium due Aug. 11, 2025 linked to the least performing of the Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on Feb. 8, 2023 and on any subsequent semiannual observation date at a premium of 15.3% per year if all three indexes close above their initial levels.
The maturity date call premium is 45.9%.
If note called, the payout at maturity will be par if the worst performing index finishes at or above its 70% 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.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $500,000
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| Maturity: | Aug. 11, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 45.9% if called; if not called and 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
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| Call: | Automatically starting on Feb. 8, 2023 and on any subsequent semiannual observation date at a premium of 15.3% per year if all three indexes close above initial levels
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| Initial levels: | 32,803.47 for Dow, 13,207.69 for Nasdaq, 1,921.824 for Russell
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| Barrier levels: | 22,962.429 for Dow, 9,245.383 for Nasdaq, 1,345.2768 for Russell, 70% of initial levels
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| Pricing date: | Aug. 5, 2022
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| Settlement date: | Aug. 10, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.75%
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| Cusip: | 40441XGX2
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