Published on 12/9/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $641,000 autocallable barrier notes with step-up premium on indexes
Chicago, Dec. 11 – HSBC USA Inc. priced $641,000 of 0% autocallable barrier notes with step-up premium due Nov. 2, 2027 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 Oct. 30, 2023 if the level of the worst performing index is greater than or equal to 92% of its initial level and on any subsequent semiannual observation date at a premium of 12.65% per year.
The maturity date call premium is 63.25%.
The payout at maturity will be par if the worst performing index declines more than 8% and 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: | $641,000
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| Maturity: | Nov. 2, 2027
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 63.25% if worst performer finishes above 92% call threshold; if worst performing index declines more than 8% but finishes at or above barrier level par; otherwise, 1% loss for every 1% that worst performing index declines if it ends below the barrier level
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| Call: | Automatically starting on Oct. 30, 2023 if the level of the worst performing index is greater than or equal to its 92% of initial level and on any subsequent semiannual observation date at a premium of 12.65% per year
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| Initial levels: | 32,861.80 for Dow, 1,846.921 for Russell, 3,901.06 for S&P
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| Barrier levels: | 24,646.35 for Dow, 1,385.19075 for Russell, 2,925.795 for S&P, 75% of initial levels
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| Pricing date: | Oct. 28, 2022
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| Settlement date: | Nov. 2, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40441XSG6
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