Published on 7/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $590,000 autocallable contingent income barrier notes on two ETFs
By Kiku Steinfeld
Chicago, July 3 – HSBC USA Inc. priced $590,000 autocallable contingent income barrier notes due May 10, 2024 linked to the least performing of the SPDR S&P ETF Trust and the Invesco QQQ Trust, Series 1, 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 9% if each fund closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each fund closes at or above its initial level on any monthly coupon observation date after six months.
The payout at maturity will be par unless any fund closes below 70% of its initial level, in which case investors will lose 1% for each 1% decline in the least performing fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying funds: | SPDR S&P ETF Trust and the Invesco QQQ Trust, Series 1
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| Amount: | $590,000
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| Maturity: | May 10, 2024
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| Coupon: | 9%, payable monthly if each fund closes at or above coupon barrier level on determination date for that period
|
| Price: | Par
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| Payout at maturity: | Par unless any fund closes below trigger level, in which case full exposure to the losses of the least performing fund
|
| Call: | At par plus coupon if each stock closes at or above initial price on any monthly call observation date after six months
|
| Initial level: | $309.88 for Invesco, $415.19 for SPDR
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| Coupon barriers levels: | $216.916 for Invesco, $290.633 for SPDR, 70% of initial levels
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| Trigger levels: | $216.916 for Invesco, $290.633 for SPDR, 70% 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: | 0%
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| Cusip: | 40441XE97
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