Published on 10/3/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $424,000 10% autocallable contingent income barrier notes on indexes
Chicago, Oct. 3 – HSBC USA Inc. priced $424,000 of autocallable contingent income barrier notes due Sept. 22, 2025 linked to the least performing of the S&P 500 index, Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10%, paid monthly, if each underlying index closes at or above its 70% coupon barrier on the related monthly observation date.
The securities will be called automatically starting on March 17, 2023 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 60% barrier value. Otherwise, investors will lose 1% for every 1% that the worst performing index declines.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Nasdaq-100 index
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| Amount: | $424,000
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| Maturity: | Sept. 22, 2025
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| Coupon: | 10% annual rate, paid monthly, if each underlying index closes at or above its 70% coupon barrier on the related monthly observation date
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| 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: | Automatically starting on March 17, 2023 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date
|
| Initial levels: | 11,953.27 for Nasdaq, 1,812.843 for Russell, 3,899.89 for S&P
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| Coupon barriers: | 8,367.289 for Nasdaq, 1,268.9901 for Russell, 2,729.923 for S&P, 70% of initial levels
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| Barrier levels: | 7,171.962 for Nasdaq, 1,087.7058 for Russell, 2,339.934 for S&P, 60% of initial levels
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| Pricing date: | Sept. 19, 2022
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| Settlement date: | Sept. 22, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40441XMX5
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