Published on 8/29/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $496,000 autocallable barrier notes with step-up premium on fund, index
Chicago, Aug. 29 – HSBC USA Inc. priced $496,000 of 0% autocallable barrier notes with step-up premium due Aug. 24, 2026 linked to the least performing of the Financial Select Sector SPDR Fund and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on Aug. 21, 2023 and on any subsequent annual observation date at a premium of 14.5% per year if both assets close above their initial levels.
The maturity date premium is 58%.
The payout at maturity will be par if either asset declines but the worst performer finishes at or above its 70% barrier. Investors will lose 1% for every 1% that the worst performer 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 assets: | Financial Select Sector SPDR Fund and Russell 2000 index
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| Amount: | $496,000
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| Maturity: | Aug. 24, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 58% call premium if both assets close above initial levels; if either asset declines but both finish at or above barrier level par; 1% loss for every 1% that worst performer declines if it ends below the barrier level
|
| Call: | Automatically starting on Aug. 21, 2023 and on any subsequent annual observation date at a premium of 14.5% per year if both assets close above initial levels
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| Initial levels: | $34.96 for fund, 1,957.346 for Russell
|
| Barrier levels: | $24.472 for fund, 1,370.1422 for Russell, 70% of initial levels
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| Pricing date: | Aug. 19, 2022
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| Settlement date: | Aug. 24, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40441XGT1
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