Published on 12/7/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.39 million 8.2% contingent income callable securities on indexes
New York, Dec. 7 – HSBC USA Inc. priced $3.39 million of contingent income callable securities due Dec. 4, 2025 linked to the Russell 2000 index, S&P 500 index and Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8.2%, paid quarterly, if each underlying index closes at or above its 65% downside threshold every day that quarter.
The securities may be called starting Feb. 29, 2024 on any quarterly call determination date.
If the worst performing index gains or ends above its 65% downside threshold the payout at maturity will be par plus the contingent coupon, if any. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below its downside threshold level.
HSBC Securities is the agent. Morgan Stanley Wealth Management will act as placement agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income callable securities
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| Underlying indexes: | Russell 2000 index, S&P 500 index and Euro Stoxx 50 index
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| Amount: | $3,394,000
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| Maturity: | Dec. 4, 2025
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| Coupon: | 8.2%, paid quarterly, if each underlying index closes at or above its 65% downside threshold every day that quarter
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above its downside threshold level, par; 1% loss for every 1% that worst performing index declines if it finishes below its downside threshold level
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| Call: | Starting Feb. 29, 2024 on any quarterly call determination date
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| Initial levels: | 4,382.47 for Euro Stoxx 50, 1,809.02 for Russell 2000, 4,567.8 for S&P 500
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| Downside thresholds: | 2,848.6055 for Euro Stoxx 50, 1,175.863 for Russell 2000, 2,969.07 for S&P 500, 65% of initial level
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 5
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| Agent: | HSBC Securities
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 2% including a structuring fee of 0.5%
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| Cusip: | 40447ASV7
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