Published on 2/7/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $9.1 million 8.9% trigger callable yield notes on two SPDR ETFs
By William Gullotti
Buffalo, N.Y., Feb. 7 – HSBC USA Inc. priced $9.1 million of 8.9% trigger callable yield notes due April 25, 2025 linked to the least performing of the SPDR Dow Jones Industrial Average ETF Trust and the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes are callable at par on any coupon payment date after three months.
The payout at maturity will be par of $10 unless any ETF finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worst performing ETF.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger callable yield notes
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Underlying funds: | SPDR Dow Jones Industrial Average ETF Trust, Energy Select Sector SPDR Fund
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Amount: | $9,099,700
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Maturity: | April 25, 2025
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Coupon: | 8.9%, payable monthly
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Price: | Par of $10
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Payout at maturity: | If each ETF finishes at or above trigger level, par; otherwise, full exposure to the decline of the worst performer from its initial level
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Call option: | At par on any coupon payment date after three months
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Initial levels: | $378.60 for Dow ETF Trust, $80.17 for Energy
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Trigger levels: | $227.16 for Dow ETF Trust, $48.10 for Energy; 60% of initial levels
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Strike date: | Jan. 19
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Pricing date: | Jan. 22
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Settlement date: | Jan. 25
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | None
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Cusip: | 40443B288
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