Published on 11/28/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.66 million autocallable barrier notes with step-up premium on indexes
Chicago, Nov. 28 – HSBC USA Inc. priced $2.66 million of 0% autocallable barrier notes with step-up premium due Nov. 27, 2028 linked to the least performing of the S&P 500 index, Russell 2000 index and Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on Dec. 2, 2024 if the level of the worst performing index is greater than or equal to 85% of its initial level and on any subsequent semiannual observation date at a premium of 8.7% per year.
If all three indexes close above the 85% call thresholds, the payout at maturity will be par plus the 43.5% final call premium.
The payout at maturity will be par if the worst performing index declines more than 15% but finishes at or above its 75% barrier. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below the barrier level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying indexes: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $2,661,000
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| Maturity: | Nov. 27, 2028
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 43.5% call premium if all three indexes close above 85% call barriers; if worst performing index declines more than 15% but finishes at or above barrier level par; 1% loss for every 1% that worst performing index declines if it ends below the barrier level
|
| Call: | Automatically starting on Dec. 2, 2024 if the level of the worst performing index is greater than or equal to 85% of its initial level and on any subsequent semiannual observation date at a premium of 8.7% per year
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| Initial levels: | 35,088.29 for Dow, 1,783.263 for Russell, 4,538.19 for S&P
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| Barrier levels: | 26,316.2175 for Dow, 1,337.44725 for Russell, 3,403.6425 for S&P, 75% of initial levels
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| Pricing date: | Nov. 21
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| Settlement date: | Nov. 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40447ASH8
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