Published on 4/18/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.26 million 8% contingent income callable securities on indexes
New York, April 18 – HSBC USA Inc. priced $6.26 million of contingent income callable securities due April 16, 2026 linked to the Russell 2000 index, S&P 500 index and Nasdaq-100 index, 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% downside threshold every day that quarter.
The securities may be called starting July 12 on any quarterly call determination date.
If the worst performing index gains or ends above its 65% downside threshold the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below its downside threshold 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 Nasdaq-100 index
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| Amount: | $6.26 million
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| Maturity: | April 16, 2026
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| Coupon: | 8%, paid quarterly, if each underlying index closes at or above its 65% downside threshold every day that quarter
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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; 1% loss for every 1% that worst performing index declines if it finishes below its downside threshold level
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| Call: | Starting July 12 on any quarterly call determination date
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| Initial levels: | 18,003.49 for Nasdaq-100, 2,003.174 for Russell 2000, 5,123.41 for S&P 500
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| Downside thresholds: | 11,702.2685 for Nasdaq-100, 1,302.0631 for Russell 2000, 3,330.2165 for S&P 500, 65% of initial level
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| Pricing date: | April 12
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| Settlement date: | April 17
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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: | 40447AY99
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