Published on 6/22/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.97 million 9.35% autocallable contingent income barrier notes on indexes
Chicago, June 22 – HSBC USA Inc. priced $1.97 million of autocallable contingent income barrier notes due Sept. 5, 2024 linked to the least performing of the Nasdaq-100 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 9.35%, paid monthly, if each underlying index closes at or above its 70% barrier level on the related monthly observation date.
The securities will be called automatically starting on Nov. 30, 2023 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent monthly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 70% barrier value. Otherwise, investors will lose 1% for every 1% that the worst performing index declines.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Nasdaq-100 index and Russell 2000 index
|
| Amount: | $1,974,000
|
| Maturity: | Sept. 5, 2024
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| Coupon: | 9.35% annual rate, paid monthly, if each underlying index closes at or above its 70% barrier level on the related monthly observation date
|
| Price: | Par
|
| Payout at maturity: | If worst performing index finishes at or above the barrier level par; 1% loss for every 1% that worst performing index declines if it ends below barrier value
|
| Call: | Automatically starting on Nov. 30, 2023 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent monthly observation date
|
| Initial levels: | 14,254.09 for Nasdaq, 1,749.650 for Russell
|
| Coupon barriers: | 9,977.863 for Nasdaq, 1,224.755 for Russell, 70% of initial levels
|
| Barrier levels: | 9,977.863 for Nasdaq, 1,224.755 for Russell, 70% of initial levels
|
| Pricing date: | May 31
|
| Settlement date: | June 5
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40447AAB0
|
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