Published on 8/14/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.99 million autocallable barrier notes with step-up premium on S&P, Dow
Chicago, Aug. 14 – HSBC USA Inc. priced $1.99 million of 0% autocallable barrier notes with step-up premium due July 31, 2026 linked to the least performing of the S&P 500 index and Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on Jan. 26, 2024 and on any subsequent observation date at a premium of 9.65% per year if both indexes close above their initial levels.
If the notes have not been called because at least one index has finished below its initial level, the payout at maturity will be par if each index finishes at or above its 60% barrier. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below the barrier 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 Dow Jones industrial average
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| Amount: | $1,989,000
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| Maturity: | July 31, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus final call premium of 28.95% if both indexes close above initial values; if each index finishes at or above barrier level par; 1% loss for every 1% that worst performing index declines if it ends below the barrier level
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| Call: | Automatically starting on Jan. 26, 2024 and on any subsequent annual observation date at a premium of 9.65% per year if both indexes close above initial levels
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| Initial levels: | 4,566.75 for S&P, 35,520.12 for Dow
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| Barrier levels: | 2,740.05 for S&P, 21,312.072 for Dow, 60% of initial levels
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| Pricing date: | July 26
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| Settlement date: | July 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40447AGP3
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