Published on 1/15/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $67,000 10.4% autocallable contingent income barrier notes on indexes
By Kiku Steinfeld
Chicago, Jan. 16 – HSBC USA Inc. priced $67,000 of autocallable contingent income barrier notes due Feb. 5, 2024 linked to the Nasdaq-100 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.4%, paid monthly, if each underlying index closes at or above its 75% 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 75% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing index declines.
The securities will be called automatically starting on Nov. 1, 2023 at par if the level of the worst performing index is greater than or equal to its initial level on a monthly observation date.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Nasdaq-100 index and Russell 2000 index
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| Amount: | $67,000
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| Maturity: | Feb. 5, 2024
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| Coupon: | 10.4%, paid monthly, if each underlying index closes at or above its 75% barrier level on the related monthly 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
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| Call: | Automatically starting on Nov. 1, 2023 at par if the level of the worst performing index is greater than or equal to its initial level on a monthly observation date
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| Initial levels: | 13,245.99 for Nasdaq, 1,768.987 for Russell
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| Coupon barriers: | 9,934.4925 for Nasdaq, 1,326.74025 for Russell, 75% of initial levels
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| Barrier levels: | 9,934.4925 for Nasdaq, 1,326.74025 for Russell, 75% 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%
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| Cusip: | 40441X3X6
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