Published on 3/19/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.32 million autocallable barrier notes with step-up premium on indexes
Chicago, March 19 – HSBC USA Inc. priced $2.32 million of 0% autocallable barrier notes with step-up premium due March 6, 2029 linked to the least performing of the Dow Jones industrial average, S&P 500 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on March 3, 2025 if the level of the worst performing index is greater than or equal to its initial level and on any subsequent annual observation date at a premium of 8.36% per year.
The maturity date premium is 41.8%.
If the notes are not called, the payout at maturity will be par if the worst performing index finishes at or above its 55% 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, S&P 500 index and Russell 2000 index
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| Amount: | $2.32 million
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| Maturity: | March 6, 2029
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 41.8% if called; if at least one index declines but 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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| Call: | Automatically starting on March 3, 2025 if the level of the worst performing index is greater than or equal to its initial level and on any subsequent annual observation date at a premium of 8.36% per year
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| Initial levels: | 39,087.38 for Dow, 2,076.395 for Russell, 5,137.08 for S&P
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| Barrier levels: | 21,498.059 for Dow, 1,142.01725 for Russell, 2,825.394 for S&P, 55% of initial levels
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| Pricing date: | March 1
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| Settlement date: | March 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40447AD92
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