Published on 8/23/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $710,000 autocallable barrier notes with step-up premium on indexes
Chicago, Aug. 23 – HSBC USA Inc. priced $710,000 of 0% autocallable barrier notes with step-up premium due Aug. 18, 2025 linked to the least performing of the Dow Jones industrial average, Nasdaq-100 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically if the level of the worst performing index is greater than or equal to its initial level starting on Feb. 15, 2023 and on any subsequent quarterly observation date at par plus a premium of 14.5% per year.
At maturity, the payout will be par plus the return of the worst performer if all three indexes finish positive.
The payout at maturity will be par if the worst performing index declines but finishes at or above its 70% 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, Nasdaq-100 index and Russell 2000 index
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| Amount: | $710,000
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| Maturity: | Aug. 18, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus return of worst performer if all three indexes finish positive; if worst performing index declines but 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 if the level of the worst performing index is greater than or equal to its initial level starting on Feb. 15, 2023 and on any subsequent quarterly observation date at par plus a premium of 14.5% per year
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| Initial levels: | 33,761.05 for Dow, 13,565.87 for Nasdaq, 2,016.616 for Russell
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| Barrier levels: | 23,632.735 for Dow, 9,496.109 for Nasdaq, 1,411.6312 for Russell, 70% of initial levels
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| Pricing date: | Aug. 12, 2022
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| Settlement date: | Aug. 17, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3%
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| Cusip: | 40441XHN3
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