Published on 11/21/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $302,000 contingent income buffered autocallables linked to Nasdaq, Russell
By Angela McDaniels
Tacoma, Wash., Nov. 21 – HSBC USA Inc. priced $302,000 of autocallable contingent income buffered notes due Aug. 4, 2025 linked to the lesser performing of 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 13.3% per year if each index closes at or above its coupon trigger level, 85% of its initial level, on the observation date for that month.
Beginning May 1, 2023, the notes will be automatically called 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 worst performing index finishes below its buffer level, 85% of its initial level, in which case investors will lose 1% for every 1% that the worst performing index declines beyond 15%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income buffered notes
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| Underlying indexes: | Nasdaq-100 index and the Russell 2000 index
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| Amount: | $302,000
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| Maturity: | Aug. 4, 2025
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| Coupon: | 10.95% per year, payable monthly if each index closes at or above coupon trigger level on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless worst performing index finishes below buffer level, in which case 1% loss for every 1% that worst performing index declines beyond 15%
|
| Call: | Beginning May 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: | 11,405.57 for Nasdaq and 1,846.863 for Russell
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| Coupon trigger: | 9,694.7345 for Nasdaq and 1,569.83355 for Russell, or 85% of initial levels
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| Buffer levels: | 9,694.7345 for Nasdaq and 1,569.83355 for Russell, or 85% of initial levels
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| Pricing date: | Oct. 31, 2022
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| Settlement date: | Nov. 3, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40441XQV5
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