Published on 7/2/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $393,000 callable contingent income barrier notes on Nasdaq, Russell, S&P
By Kiku Steinfeld
Chicago, July 3 – HSBC USA Inc. priced $393,000 of callable contingent income barrier notes due Aug. 11, 2025 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 8% if each index closes at or above its coupon barrier level, 73% of its initial level, on the observation date for that month.
The notes are callable at par monthly after six months.
The payout at maturity will be par unless any index finishes below its 73% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
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| Amount: | $393,000
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| Maturity: | Aug. 11, 2025
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| Coupon: | 8%, payable monthly if each index closes at or above coupon barrier level on determination date for that month
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing index
|
| Call: | Callable at par monthly after six months
|
| Initial levels: | 12,728.27 for Nasdaq, 1,972.609 for Russell, 4,164.00 for S&P
|
| Coupon barrier levels: | 9,291.6371 for Nasdaq, 1,440.00457 for Russell, 3,039.72 for S&P; 73% of initial levels
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| Trigger levels: | 9,291.6371 for Nasdaq, 1,440.00457 for Russell, 3,039.72 for S&P; 73% of initial levels
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| Pricing date: | Feb. 7, 2023
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| Settlement date: | Feb. 10, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40441XK41
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