Published on 9/12/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $537,000 autocallable contingent income barrier notes linked to indexes
By Angela McDaniels
Tacoma, Wash., Sept. 12 – HSBC USA Inc. priced $537,000 of autocallable contingent income barrier notes with memory coupon due Oct. 6, 2023 linked to the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 12.65% per year if each index closes at or above its coupon barrier level, 80% of its initial level, on observation date for that month. Any previously unpaid coupons will also be paid.
Beginning March 1, 2023, the notes will be called automatically at par if each index closes at or above its initial level on any monthly observation date.
The payout at maturity will be par unless the least-performing index finishes below its barrier level, 80% of its initial level, in which case investors will be exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying indexes: | Nasdaq-100 index and Russell 2000 index
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| Amount: | $537,000
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| Maturity: | Oct. 6, 2023
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| Coupon: | 12.65% per year, payable monthly plus any previously unpaid coupons if each index closes at or above coupon barrier level on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless least-performing index finishes below barrier level, in which case exposure to decline of least-performing index
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| Call: | Beginning March 1, 2023, automatically at par if each index closes at or above initial level on any monthly observation date
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| Initial levels: | 12,272.03 for Nasdaq and 1,844.11 for Russell
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| Coupon trigger levels: | 9,817.624 for Nasdaq and 1,475.288 for Russell, or 80% of initial levels
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| Barrier levels: | 9,817.624 for Nasdaq and 1,475.288 for Russell, or 80% of initial levels
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| Pricing date: | Aug. 31, 2022
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| Settlement date: | Sept. 6, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40441XFU9
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