Published on 8/25/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.32 million 10.1% callable contingent income barrier notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 25 – HSBC USA Inc. priced $3.32 million of callable contingent income barrier notes due Aug. 24, 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 10.1%. 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 70% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing index declines.
The securities may be called at par on any quarterly observation date after one year.
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: | $3,316,000
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| Maturity: | Aug. 24, 2026
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| Coupon: | 10.1%, payable quarterly if each index closes at or above 70% of its initial level on the corresponding quarterly observation date
|
| 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
|
| Call option: | On any quarterly observation date after one year at par
|
| Initial levels: | 34,500.66 for Dow, 14,694.84 for Nasdaq, 1,859.421 for Russell
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| Coupon barriers: | 24,150.462 for Dow, 10,286.388 for Nasdaq, 1,301.5947 for Russell, 70% of initial levels
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| Barrier levels: | 24,150.462 for Dow, 10,286.388 for Nasdaq, 1,301.5947 for Russell, 70% of initial levels
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40447AHE7
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