Published on 1/2/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.4 million autocallable barrier notes with step-up premium on three indexes
New York, Jan. 2 – HSBC USA Inc. priced $2.4 million of 0% autocallable barrier notes with step-up premium due Dec. 27, 2028 linked to the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically at a premium of 8.75% per year if the closing level of the worst performing index is greater than or equal to 95% of its initial level on any semiannual observation date starting on Dec. 24, 2024.
The payout at maturity will be par if the worst performing index finishes at or above its 75% barrier. Otherwise, investors will lose 1% for every 1% that the worst performing index declines from initial 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: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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| Amount: | $2,399,000
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| Maturity: | Dec. 27, 2028
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above barrier level, par; otherwise, 1% loss for every 1% that worst performing index declines from initial level
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| Call: | Automatically at a premium of 8.75% per year if the closing level of the worst performing index is greater than or equal to 95% of its initial level on any semiannual observation date starting on Dec. 24, 2024
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| Initial levels: | 37,404.35 for Dow Jones industrial average, 2,017.065 for Russell 2000, 4,746.75 for S&P 500
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| Barrier levels: | 28,053.2625 for Dow Jones industrial average, 1,512.79875 for Russell 2000, 3,560.0625 for S&P 500, 75% of initial levels
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| Pricing date: | Dec. 21
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| Settlement date: | Dec. 27
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40447ATB0
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