Published on 10/30/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.11 million 8.3% callable contingent income barrier notes on Russell, S&P
Chicago, Oct. 30 – HSBC USA Inc. priced $1.11 million of callable contingent income barrier notes due Oct. 26, 2026 linked to the least performing of the Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a semiannual coupon of 8.3% if both indexes close above their 70% coupon barrier levels on the related observation date.
The securities may be called at par starting on Oct. 28, 2024 and on any subsequent semiannual determination 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.
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: | Russell 2000 index and S&P 500 index
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| Amount: | $1,106,000
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| Maturity: | Oct. 26, 2026
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| Coupon: | 8.3% annual rate, payable semiannually if both indexes close above coupon barriers on related observation dates
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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
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| Call: | At par starting on Oct. 28, 2024 and on any subsequent semiannual determination date
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| Initial levels: | 1,680.792 for Russell, 4,224.16 for S&P
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| Coupon barriers: | 1,176.5544 for Russell, 2,956.912 for S&P, 70% of initial levels
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| Barrier levels: | 1,176.5544 for Russell, 2,956.912 for S&P, 70% of initial levels
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| Pricing date: | Oct. 20
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| Settlement date: | Oct. 25
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40447APN8
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