Published on 3/6/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.15 million autocallable barrier notes with step-up premium on two indexes
New York, March 6 – HSBC USA Inc. priced $3.15 million of 0% autocallable barrier notes with step-up premium due Feb. 14, 2028 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically at a premium of 9% per year if the closing level of the worst performing index is greater than or equal to its initial level on any quarterly observation date starting on February 11, 2025.
If the worst performing index finishes at or above 85% of its initial level, the payout at maturity will be par plus 36%.
The payout at maturity will be par if the worst performing index declines by more than 15% but finishes at or above its 75% barrier. Otherwise, investors will lose 1% for every 1% that the worst performing index declines from initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-up premium
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Underlying indexes: | S&P 500 index and Russell 2000 index
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Amount: | $3,154,000
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Maturity: | Feb. 14, 2028
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If worst performing index finishes at or above 85% of initial level, par plus 36%; if worst performing index declines by more than 15% but finishes at or above barrier level, par; otherwise, 1% loss for every 1% that worst performing index declines from initial level
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Call: | Automatically at a premium of 9% per year if the closing level of the worst performing index is greater than or equal to its initial level on any quarterly observation date starting on February 11, 2025
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Initial levels: | 1,950.359 for Russell 2000, 4,995.06 for S&P 500
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Barrier levels: | 1,462.76925 for Russell 2000, 3,746.295 for S&P 500, 75% of initial levels
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Pricing date: | Feb. 7
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Settlement date: | Feb. 12
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40447AZG2
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