Published on 3/28/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $9.5 million 8.15% contingent income barrier autocalls with memory on indexes
New York, March 28 – HSBC USA Inc. priced $9.5 million of autocallable contingent income barrier notes with memory coupon due March 29, 2027 linked to the 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 8.15%, paid quarterly, if each underlying index closes at or above its 75% barrier level on the related quarterly observation date, plus any previously unpaid coupons.
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 March 26, 2025 if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying indexes: | Russell 2000 index and S&P 500 index
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| Amount: | $9.5 million
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| Maturity: | March 29, 2027
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| Coupon: | 8.15%, paid quarterly, if each underlying index closes at or above its 75% barrier level on the related quarterly observation date, plus any previously unpaid coupons
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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 March 26, 2025 if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date
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| Initial levels: | 2,071.998 for Russell 2000, 5,234.18 for S&P 500
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| Coupon barriers: | 1,553.9985 for Russell 2000, 3,925.635 for S&P 500, 75% of initial levels
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| Barrier levels: | 1,553.9985 for Russell 2000, 3,925.635 for S&P 500, 75% of initial levels
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| Pricing date: | March 22
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| Settlement date: | March 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.1%
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| Cusip: | 40447AR71
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