New Issue: HSBC sells $920,000 barrier autocalls with step-up premium and digital return on S&P

By Kiku Steinfeld

Chicago, March 11 – HSBC USA Inc. priced $920,000 of 0% autocallable barrier notes with step-up premium and digital upside return due June 30, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus a call premium if the index closes at or above its initial level on any annual call observation date. The call premium is 9% per year.

If the notes are not called and the index return is greater than 25%, the payout will be par plus the index return. If the index return is greater than zero but less than or equal to 25%, the payout will be 25%. If the index falls but by no more than 25%, the payout will be par. Otherwise, investors will be fully exposed to the decline of the index.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable barrier notes with step-up premium and digital upside return
Underlying index:	S&P 500
Amount:	$920,000
Maturity:	June 30, 2028
Coupon:	0%
Price:	Par
Payout at maturity:	If index return is greater than 25%, par plus the index return, if return is greater than zero but less than or equal to 25%, par plus 25%, if index falls but by no more than 25%, par; otherwise, full exposure to losses
Call:	At par plus a call premium of 9% per year if index closes at or above its initial level on any annual call date
Initial index level:	4,305.26
Pricing date:	June 27, 2023
Settlement date:	June 30, 2023
Agent:	HSBC Securities (USA) Inc.
Fees:	2.31%
Cusip:	40447ADH4

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