Published on 1/15/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $250,000 barrier participation notes with call on Nasdaq, Russell, Dow
By Kiku Steinfeld
Chicago, Jan. 16 – HSBC USA Inc. priced $250,000 of 0% barrier participation notes with call feature due May 4, 2026 linked to the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus 18% if the worst performing index closes at or above its initial level on May 1, 2024.
If the notes are not called and the worst performing index finishes at or above its initial level, the payout at maturity will be par plus 100% of the return of the worst performing index.
If the worst performing index finishes negative but at or above its 70% barrier level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performing index.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Barrier participation notes with call feature
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| Underlying index: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index,
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| Amount: | $250,000
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| Maturity: | May 4, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the worst performing index return is positive, par plus 100% of the index return; if worst-performing index’s final level is negative but at or greater than barrier level, par; otherwise, full exposure to the decline of the worst performing index from its initial level
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| Call: | At par plus 18% if worst performing index closes at or above initial level on May 1, 2024
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| Initial levels: | 34,098.16 for Dow, 1,768.987 for Russell and 13,245.99 for Nasdaq
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| Barrier levels: | 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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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 3%
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| Cusip: | 40441X5S5
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