By Kiku Steinfeld
Chicago, Oct. 6 – HSBC USA Inc. priced $950,000 of 0% autocallable market plus notes due May 27, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus a 12.8% call premium if the closing level of the index is greater than or equal to the initial level on May 22, 2024. The initial level will be the lowest closing level of the index on any trading day from the pricing date of March 21, 2023 to and including May 3, 2023.
If the notes are not called and the index finishes at or above its initial level, the payout at maturity will be par plus 150% of the index return.
If the index declines but finishes at or above the 75% trigger level, investors will receive par. Otherwise, investors will be fully exposed the decline of the index from its initial level.
HSBC Securities (USA) Inc. is the agent and JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable market plus notes
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| Underlying index: | S&P 500
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| Amount: | $950,000
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| Maturity: | May 27, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If index finishes at or above initial level, par plus 150% of index return; par if index declines by up to 25%; otherwise full exposure to losses
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| Call: | Automatically at par plus 12.8% call premium if index closes at or above initial level on May 22, 2024
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| Initial level: | Lowest closing level of the index on any trading day from pricing date to and including May 3, 2023
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| Trigger level | 75% of initial level
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| Pricing date: | March 21, 2023
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| Settlement date: | March 27, 2023
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| Agents: | HSBC Securities (USA) Inc., JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 1.58%
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| Cusip: | 40441X2M1
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