Published on 9/2/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $587,000 autocallable barrier notes with step-up premium on three indexes
By Kiku Steinfeld
Chicago, Sept. 5 – HSBC USA Inc. priced $587,000 of 0% autocallable barrier notes with step-up premium due March 3, 2026 linked to the Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically at a premium of 16.67% per year on any semiannual observation date starting February 28, 2024 if each index closes at or above its initial level.
The payout at maturity will be par if the worst performing index finishes at or above its 70% 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: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $587,000
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| Maturity: | March 3, 2026
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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 barrier level par; 1% loss for every 1% that worst performing index declines if it ends below the barrier level
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| Initial levels: | 32,656.70 for Dow, 12,042.12 for Nasdaq, 1,896.991 for Russell
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| Barrier levels: | 22,859.69 for Dow, 8,429.484 for Nasdaq, 1,327.8937 for Russell, 70% of initial level
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| Call: | Automatically at a premium of 16.67% per year on any semiannual observation date starting February 28, 2024 if each index closes at or above its initial level
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| Pricing date: | Feb. 28, 2023
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| Settlement date: | March 3, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40441XS68
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