Published on 2/21/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.16 million contingent income callable securities on three indexes
New York, Feb. 21 – HSBC USA Inc. priced $4.16 million of contingent income callable securities due Aug. 14, 2026 linked to the Russell 2000 index, the S&P 500 index and the Nikkei Stock Average, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8%, paid quarterly, if each underlying index closes at or above its 65% coupon barrier on every trading day during the relevant observation period.
The securities may be called at par on any quarterly call determination date.
If the worst performing index finishes at or above its 60% downside threshold, the payout at maturity will be par.
Otherwise, investors will lose 1% for every 1% that the worst performing index declines from initial level.
HSBC Securities is the agent. Morgan Stanley Wealth Management will act as placement agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | Russell 2000 index, S&P 500 index and Nikkei Stock Average
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| Amount: | $4,155,000
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| Maturity: | Aug. 14, 2026
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| Coupon: | 8%, paid quarterly, if each underlying index closes at or above its coupon barrier on every trading day during the relevant observation period
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above its downside threshold level, par; otherwise, 1% loss for every 1% that worst performing index declines from initial level
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| Call option: | At par on any quarterly call determination date
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| Initial levels: | 36,897.42 for Nikkei Stock Average, 2,009.992 for Russell 2000, 5,026.61 for S&P 500
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| Downside thresholds: | 22,138.452 for Nikkei Stock Average, 1,205.9952 for Russell 2000, 3,015.966 for S&P 500, 60% of initial levels
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| Coupon barriers: | 23,983.323 for Nikkei Stock Average, 1,306.4948 for Russell 2000, 3,267.2965 for S&P 500, 65% of initial levels
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| Pricing date: | Feb. 9
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| Settlement date: | Feb. 15
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| Agent: | HSBC Securities
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 40447AZL1
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