Published on 2/26/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $12 million step-down trigger autocallable notes on Stoxx, S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Feb. 26 – HSBC USA Inc. priced $12 million of 0% step-down trigger autocallable notes due Feb. 19, 2027 linked to the least performing of the Russell 2000 index, the Euro Stoxx 50 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annual call premium of 10.15% if each index closes at or above its initial level on any quarterly observation date after one year.
The payout at maturity will be par plus 30.45% unless any index finishes below its 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worse performing index.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Step down trigger autocallable notes
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| Underlying indexes: | Russell 2000 index, S&P 500 and Euro Stoxx 50
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| Amount: | $12 million
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| Maturity: | Feb. 19, 2027
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold, par plus 30.45%; otherwise, 1% loss for each 1% decline of worse performing index
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| Call: | At par plus 10.15% if each index closes at or above its initial level on any quarterly observation date after one year except the final observation date when the call level will be 70% of initial level
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| Initial index levels: | 2,061.478 for Russell, 5,029.73 for S&P, 4,743.17 for Stoxx
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| Downside thresholds: | 1,443.035 for Russell, 3,520.81 for S&P, 3,320.22 for Stoxx; 70% of initial levels
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| Pricing date: | Feb. 15
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| Settlement date: | Feb. 20
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| Agent: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40441B189
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