Published on 3/12/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $9 million 10.45% contingent income autocallables on indexes
Chicago, March 12 – HSBC USA Inc. priced $9 million of contingent income autocallable securities due Sept. 10, 2025 linked to the worst performing of the Nasdaq-100 index, Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.45%, paid quarterly, if each underlying index closes at or above its 70% interest barrier on the related quarterly observation date.
The securities will be called automatically starting June 5 at par and on any subsequent quarterly review date if the indexes close above their initial levels.
At maturity the payout will be par unless the worst performing index closes below its 65% downside threshold level in which case investors will be fully exposed to the decline of the worst performing index.
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 autocallable securities
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and S&P 500 index
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| Amount: | $9 million
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| Maturity: | Sept. 10, 2025
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| Coupon: | 10.45%, paid quarterly, if each underlying index closes at or above its 70% interest barrier on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par unless the worst performing index closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing index
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| Call: | Automatically starting June 5 at par and on any subsequent quarterly review date if all indexes close above initial levels
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| Initial levels: | 17,897.87 for Nasdaq, 2,053.708 for Russell, 5,078.65 for S&P
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| Interest barrier levels: | 12,528.509 for Nasdaq, 1,437.5956 for Russell, 3,555.055 for S&P, 70% of initial levels
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| Downside thresholds: | 11,633.6155 for Nasdaq, 1,334.9102 for Russell, 3,301.1225 for S&P, 65% of initial levels
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| Pricing date: | March 5
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| Settlement date: | March 8
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| Agent: | HSBC Securities
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 0%
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| Cusip: | 40447AK52
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