Published on 5/3/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.24 million trigger autocallable contingent yield notes on S&P, Stoxx
Chicago, May 3 – HSBC USA Inc. priced $4.24 million of trigger autocallable contingent yield notes due May 2, 2028 linked to the performance of the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will bear interest at 10.8% per year, paid quarterly if each index closes at or above its 70% coupon barrier on the relevant observation date.
The notes will be called at par of $10 plus the coupon if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its downside threshold level, 70% of its initial level.
Otherwise, investors will lose 1% for every 1% decline of the laggard index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | S&P 500 index, Euro Stoxx 50 index
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| Amount: | $4,244,170
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| Maturity: | May 2, 2028
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| Coupon: | 10.8% annual rate, paid quarterly if each index closes at or above its 70% coupon barrier on the relevant observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus final coupon if each index finishes at or above downside threshold; otherwise, 1% loss for the 1% decline of laggard index from initial level
|
| Call: | At par plus the coupon if each index closes at or above initial level on any quarterly observation date after six months
|
| Initial index levels: | 4,135.35 for S&P, 4,358.05 for Stoxx
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| Coupon barriers: | 2,894.75 for S&P, 3,050.64 for Stoxx; 70% of initial levels
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| Downside thresholds: | 2,894.75 for S&P, 3,050.64 for Stoxx; 70% of initial levels
|
| Pricing date: | April 27
|
| Settlement date: | April 28
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40443B882
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