Published on 11/10/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $500,000 9.45% callable contingent income barrier notes on four indexes
Chicago, Nov. 10 – HSBC USA Inc. priced $500,000 of callable contingent income barrier notes due Nov. 10, 2028 linked to the least performing of the Dow Jones industrial average, 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 9.45%, paid quarterly, if all four indexes close above the 75% coupon barrier on the related observation date.
The securities will be called at par starting on Feb. 12, 2024 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: | Callable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index, S&P 500 index and Euro Stoxx 50 index
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| Amount: | $500,000
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| Maturity: | Nov. 10, 2028
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| Coupon: | 9.45% annual rate, payable quarterly if all four indexes close above coupon barrier on related 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: | At par starting on Feb. 12, 2024 and on any subsequent quarterly observation date
|
| Initial levels: | 34,112.27 for Dow, 4,178.49 for Stoxx, 1,714.068 for Russell, 4,382.78 for S&P
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| Coupon barriers: | 25,584.2025 for Dow, 3,133.8675 for Stoxx, 1,285.551 for Russell, 3,287.085 for S&P, 75% of initial levels
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| Barrier levels: | 20,467.362 for Dow, 2,507.094 for Stoxx, 1,028.4408 for Russell, 2,629.668 for S&P, 60% of initial levels
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| Pricing date: | Nov. 8
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| Settlement date: | Nov. 10
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.7%
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| Cusip: | 40447ASB1
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