New Issue: HSBC prices $104,000 7.5% autocallable contingent income barrier notes linked to S&P 500

By Kiku Steinfeld

Chicago, Aug. 28 – HSBC USA Inc. priced $104,000 of autocallable contingent income barrier notes due March 1, 2028 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Investors will receive a coupon of 7.5%, paid quarterly, if the underlying index closes at or above its 75% barrier level on the related quarterly observation date.

The payout at maturity will be par if the index ends at or above its 75% barrier value. Otherwise investors will lose 1% for every 1% that the index declines.

The securities will be called automatically starting Feb. 27, 2024 at par on any quarterly observation date if each index closes at or above its initial level.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable contingent income barrier notes
Underlying index:	S&P 500 index
Amount:	$104,000
Maturity:	March 1, 2028
Coupon:	7.5%, paid quarterly, if the underlying index closes at or above its 75% barrier level on the related quarterly observation date
Price:	Par
Payout at maturity:	If index finishes at or above the barrier level par; 1% loss for every 1% that index declines if it ends below barrier value
Call:	Automatically starting Feb. 27, 2024 at par on any quarterly observation date if each index closes at or above its initial level
Initial level:	3,970.04
Coupon barrier:	2,977.53, 75% of initial level
Barrier level:	2,977.53, 75% of initial level
Pricing date:	Feb. 24, 2023
Settlement date:	Feb. 28, 2023
Agent:	HSBC Securities (USA) Inc.
Fees:	2.5%
Cusip:	40441XR51

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