Published on 10/20/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.5 million 8.35% contingent income callable securities on indexes
Chicago, Oct. 20 – HSBC USA Inc. priced $2.5 million of contingent income callable securities due Oct. 16, 2025 linked to the worst performing of the Russell 2000 index, S&P 500 index and Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8.35%, paid quarterly, if each underlying index closes at or above its 60% downside threshold on the related quarterly observation date.
The securities may be called at par starting Jan. 16, 2024 on any quarterly call determination date.
If the worst performing index gains or ends above its 60% downside threshold the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below its downside threshold level.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management will act as placement agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | Russell 2000 index, S&P 500 index and Euro Stoxx 50 index
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| Amount: | $2,496,000
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| Maturity: | Oct. 16, 2025
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| Coupon: | 8.35% annual rate, paid quarterly, if each underlying index closes at or above its 60% downside threshold on the related quarterly observation date
|
| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above its downside threshold level, par; 1% loss for every 1% that worst performing index declines if it finishes below its downside threshold level
|
| Call: | At par starting Jan. 16, 2024 on any quarterly call determination date
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| Initial levels: | 4,136.12 for Stoxx, 1,719.711 for Russell, 4,327.78 for S&P
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| Downside thresholds: | 2,481.672 for Stoxx, 1,031.8266 for Russell, 2,596.668 for S&P, 60% of initial levels
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| Pricing date: | Oct. 13
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| Settlement date: | Oct. 18
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 40447AQA5
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