Published on 1/15/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $369,000 8.6% callable contingent income barrier notes linked to S&P, Russell
By Kiku Steinfeld
Chicago, Jan. 16 – HSBC USA Inc. priced $369,000 of callable contingent income barrier notes due Aug. 5, 2024 linked to the S&P 500 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8.6%, paid monthly, if each underlying index closes at or above its 70% barrier level on the related monthly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 70% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing index declines.
The securities may be called starting on Nov. 6, 2023 on any monthly observation date.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | S&P 500 index and Russell 2000 index
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| Amount: | $369,000
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| Maturity: | Aug. 5, 2024
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| Coupon: | 8.6%, paid monthly, if each underlying index closes at or above its 70% barrier level on the related monthly observation date
|
| Price: | Par
|
| 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 option: | Starting on Nov. 6, 2023 on any monthly observation date
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| Initial levels: | 1,768.987 for Russell, 4,169.48 for S&P
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| Coupon barriers: | 1,238.2909 for Russell, 2,918.636 for S&P, 70% of initial levels
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| Barrier levels: | 1,238.2909 for Russell, 2,918.636 for S&P, 70% of initial levels
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| Pricing date: | April 28, 2023
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| Settlement date: | May 3, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40441X3Y4
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