Published on 11/30/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million buffered uncapped market participation notes with call on stocks
Chicago, Nov. 30 – HSBC USA Inc. priced $1 million of 0% buffered uncapped market participation securities with call feature due Oct. 26, 2026 tied to the stock performance of Microsoft Corp., Alphabet, Inc. and UnitedHealth Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus 35.15% if each stock closes at or above 95% of its initial level on Oct. 30, 2023.
If the notes are not called, the payout at maturity will be par plus three times any gain of the least performing stock.
If any stock falls but the lowest stock drops by no more than 20% of its initial level, investors will receive par.
Otherwise, investors will lose 1.25% for each 1% drop of the lowest stock beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Buffered uncapped market participation securities with call feature
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| Underlying stocks: | Microsoft Corp., Alphabet, Inc. and UnitedHealth Group Inc.
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| Amount: | $1,000,000
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| Maturity: | Oct. 26, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus three times any gain of least performing stock; par if any stock falls but lowest stock drops by no more than 20% of initial level; otherwise, 1.25% loss for each 1% drop of lowest stock beyond 20%, payable in shares of that stock
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| Call: | At par plus 35.15% if all stocks close at or above 95% of their initial levels on Oct. 30, 2023
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| Initial levels: | $520.88 for UnitedHealth, $236.15 for Microsoft, $100.53 for Alphabet
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| Buffer level: | 80% of initial levels
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| Pricing date: | Oct. 21, 2022
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| Settlement date: | Oct. 26, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40441XSL5
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