Published on 10/12/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $748,000 9.5% contingent income autocallables on indexes
Chicago, Oct. 12 – HSBC USA Inc. priced $748,000 of contingent income autocallable securities due Oct. 3, 2024 linked to the worst performing of the Russell 2000 index, S&P 500 index and Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 9.5%, paid quarterly, if each underlying index closes at or above its 60% downside threshold on the related quarterly observation date.
The securities will be called automatically starting Dec. 30, 2022 at par and on any subsequent quarterly review date if all three indexes close above their initial levels.
At maturity the payout will be par unless the worst performing index closes below its 60% downside threshold level in which case investors will be fully exposed to the decline of the worst performing index.
HSBC Securities is the agent. Morgan Stanley Wealth Management will act as placement agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying indexes: | Russell 2000 index, S&P 500 index and Euro Stoxx 50 index
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| Amount: | $748,000
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| Maturity: | Oct. 3, 2024
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| Coupon: | 9.5% annual rate, paid quarterly, if each underlying index closes at or above its 60% downside threshold on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par unless the worst performing index closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing index
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| Call: | Automatically starting Dec. 30, 2022 at par and on any subsequent quarterly review date if all three indexes close above their initial levels
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| Initial levels: | 3,318.20 for Stoxx, 1,664.716 for Russell, 3,585.62 for S&P
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| Downside thresholds: | 1,990.92 for Stoxx, 998.8296 for Russell, 2,151.372 for S&P, 60% of initial levels
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| Pricing date: | Sept. 30, 2022
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| Settlement date: | Oct. 5, 2022
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| Agent: | HSBC Securities
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 40441XPH7
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