Published on 10/30/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.61 million autocallable barrier notes with step-up premium on indexes
Chicago, Oct. 30 – HSBC USA Inc. priced $2.61 million of 0% autocallable barrier notes with step-up premium due Oct. 25, 2028 linked to the least performing of the Dow Jones industrial average, Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting on Oct. 23, 2024 if the level of the worst performing index is greater than or equal to 90% of its initial level and on any subsequent quarterly observation date at a premium of 8.05% per year.
The maturity date premium is 40.25%.
The payout at maturity will be par if the worst performing index finishes at or above its 75% 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, Russell 2000 index and S&P 500 index
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| Amount: | $2,608,000
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| Maturity: | Oct. 25, 2028
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus 40.25% if called; if worst performing index declines more than 10% 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
|
| Call: | Automatically starting on Oct. 23, 2024 if the level of the worst performing index is greater than or equal to 90% of its initial level and on any subsequent quarterly observation date at a premium of 8.05% per year
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| Initial levels: | 33,127.28 for Dow, 1,680.792 for Russell, 4,224.16 for S&P
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| Barrier levels: | 24,845.46 for Dow, 1,260.594 for Russell, 3,168.12 for S&P, 75% of initial levels
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| Call levels: | 90% of initial levels
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| Pricing date: | Oct. 20
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| Settlement date: | Oct. 25
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40447APL2
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