Published on 10/5/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.13 million callable contingent income barrier notes on three indexes
By William Gullotti
Buffalo, N.Y., Oct. 5 – HSBC USA Inc. priced $1.13 million of callable contingent income barrier notes due March 31, 2025 linked to the least performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7% if each index closes at or above its trigger level, 75% of its initial level, on the observation date for that period.
The notes will be callable at par on any monthly call observation date after three months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its trigger level.
If the worst performer finishes below its trigger level but at or above its 65% barrier level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
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, Nasdaq-100 index, Russell 2000 index
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| Amount: | $1.13 million
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| Maturity: | March 31, 2025
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| Coupon: | 7%, payable monthly if each index closes at or above trigger level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par plus final coupon; if worst performer finishes below trigger level but at or above barrier level, par; otherwise, full exposure to decline of worst-performing index from initial level
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| Call option: | At par on any monthly call observation date after three months
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| Initial levels: | 33,618.88 for Dow, 14,545.83 for Nasdaq, 1,761.609 for Russell
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| Trigger levels: | 25,214.16 for Dow, 10,909.3725 for Nasdaq, 1,321.20675 for Russell; 75% of initial levels
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| Barrier levels: | 21,852.272 for Dow, 9,454.7895 for Nasdaq, 1,145.04585 for Russell; 65% of initial levels
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40447ALC6
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