Published on 12/4/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $370,000 autocallable barrier notes with step-up premium on indexes
Chicago, Dec. 4 – HSBC USA Inc. priced $370,000 of 0% autocallable barrier notes with step-up premium due Oct. 31, 2025 linked to the least performing of the Nasdaq-100 index, Russell 2000 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 April 26, 2023 if the level of the worst performing index is greater than or equal to its initial level and on any subsequent semiannual observation date at a premium of 15.3% per year.
The maturity date premium is 45.9%.
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: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $370,000
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| Maturity: | Oct. 31, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If all three indexes finish positive, par plus 45.9% final call premium; if worst performing index declines but 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 April 26, 2023 if the level of the worst performing index is greater than or equal to its initial level and on any subsequent semiannual observation date at a premium of 15.3% per year
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| Initial levels: | 31,839.11 for Dow, 11,405.90 for Nasdaq, 1,804.331 for Russell
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| Barrier levels: | 22,287.377 for Dow, 7,984.13 for Nasdaq, 1,263.0317 for Russell, 70% of initial levels
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| Pricing date: | Oct. 26, 2022
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| Settlement date: | Oct. 31, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40441XQT0
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