Published on 8/22/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $878,000 autocallable barrier notes with step-up premium on indexes
Chicago, Aug. 22 – HSBC USA Inc. priced $878,000 of 0% autocallable barrier notes with step-up premium due Aug. 16, 2027 linked to the least performing of the S&P 500 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 Aug. 11, 2023 and on any subsequent semiannual observation date at a premium of 11.8% per year if each index closes above 90% of its initial level.
The maturity date premium is 59%.
The payout at maturity will be par if the worst performing index finishes below 90% of its initial level but at or above its 75% 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: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $878,000
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| Maturity: | Aug. 16, 2027
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 59% call premium if all indexes close above 90% of initial levels; if worst performing index finishes below call level but 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 Aug. 11, 2023 and on any subsequent semiannual observation date at a premium of 11.8% per year if each index closes above 90% call level
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| Initial levels: | 33,336.67 for Dow, 1,975.257 for Russell, 4,207.27 for S&P
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| Call levels: | 90% of initial levels
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| Barrier levels: | 25,002.5025 for Dow, 1,481.44275 for Russell, 3,155.4525 for S&P, 75% of initial levels
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| Pricing date: | Aug. 11, 2022
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| Settlement date: | Aug. 16, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40441XHA1
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