Published on 8/23/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $8 million 9.4% callable contingent income barrier notes linked to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Aug. 23 – HSBC USA Inc. priced $8 million of callable contingent income barrier notes due Sept. 5, 2024 linked to the least performing of the S&P 500 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 9.4%, paid quarterly, if each underlying index closes at or above its 80% barrier level on the related quarterly observation date.
The securities may be called at par starting on Aug. 21, 2024 and on any subsequent quarterly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 80% 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.
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| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | S&P 500 index and Russell 2000 index
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| Amount: | $8 million
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| Maturity: | Sept. 5, 2024
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| Coupon: | 9.4% annual rate, paid quarterly, if each underlying index closes at or above its 80% barrier level on the related quarterly observation date
|
| Price: | Par
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| 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
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| Call: | At par starting on Aug. 21, 2024 and on any subsequent quarterly observation date
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| Initial levels: | 1,895.755 for Russell, 4,437.86 for S&P
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| Coupon barriers: | 1,516.604 for Russell, 3,550.288 for S&P, 80% of initial levels
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| Barrier levels: | 1,516.604 for Russell, 3,550.288 for S&P, 80% of initial levels
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| Pricing date: | Aug. 15
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| Settlement date: | Aug. 21
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.1%
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| Cusip: | 40447AKS2
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