Published on 11/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $185,000 autocallable contingent income buffered notes on S&P, Russell
By Kiku Steinfeld
Chicago, Nov. 1 – HSBC USA Inc. priced $185,000 of autocallable contingent income buffered notes due April 6, 2026 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a contingent coupon at an annual rate of 8.95% if each index closes at or above its trigger level, 85% of its initial level, on the observation date for that period.
The notes will be called at par if each index closes at or above its initial level on any monthly call observation date after one year.
The payout at maturity will be par unless any index finishes below its 85% buffer level, in which case investors will lose 1% loss for each 1% decline beyond the 15% buffer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income buffered notes
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| Underlying indexes: | S&P 500 index and Russell 2000 index
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| Amount: | $185,000
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| Maturity: | April 6, 2026
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| Coupon: | 8.95% annual rate, payable monthly if each index closes at or above trigger level on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above buffer level, par; otherwise, 1% loss for each 1% decline beyond 15% buffer
|
| Call: | At par if each index closes at or above initial level on any monthly call observation date after one year
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| Initial levels: | 4,109.31 for S&P and 1,802.484 for Russell
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| Trigger/buffer levels: | 3,492.9135 for S&P, 1,532.1114 for Russell, 85% of initial levels
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| Pricing date: | March 31, 2023
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| Settlement date: | April 5, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40441XX39
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