Published on 8/25/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.74 million 9.5% callable contingent income barrier notes on two indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 25 – HSBC USA Inc. priced $4.74 million of callable contingent income barrier notes due Aug. 24, 2026 linked to the Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a semiannual coupon of 9.5%. if each index closes at or above 70% of its initial level on the corresponding semiannual 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.
The securities may be called at par on any semiannual observation date after one year.
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: | Russell 2000 index and S&P 500 index
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| Amount: | $4,741,000
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| Maturity: | Aug. 24, 2026
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| Coupon: | 9.5%, payable semiannually if each index closes at or above 70% of its initial level on the corresponding semiannual observation date
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| 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 option: | On any semiannual observation date after one year at par
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| Initial levels: | 4,369.71 for S&P, 1,859.421 for Russell
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| Coupon barriers: | 3,058.797 for S&P, 1,301.5947 for Russell, 70% of initial levels
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| Barrier levels: | 3,058.797 for S&P, 1,301.5947 for Russell, 70% of initial levels
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40447AHA5
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