Published on 12/18/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.03 million trigger autocallable notes on Russell, S&P
By William Gullotti
Buffalo, N.Y., Dec. 18 – HSBC USA Inc. priced $3.03 million of 0% trigger autocallable notes due Dec. 15, 2028 tied to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus 10.5% per year if each index closes at or above its initial level on any quarterly observation date after one year.
If each index finishes at or above its initial level, the notes will be called at maturity at par plus 52.5%.
If the laggard index declines but finishes at or above the downside threshold, 75% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the laggard index from its initial level.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index
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| Amount: | $3,025,000
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| Maturity: | Dec. 15, 2028
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above its initial level, the notes will be called at par plus 52.5%; if the laggard index declines but not below downside threshold, par; otherwise, 1% loss for each 1% decline of laggard index from initial level
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| Call: | Automatically at par plus 10.5% per year if each index closes at or above initial level on any quarterly observation date after one year
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| Initial levels: | 1,881.269 for Russell, 4,643.7 for S&P
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| Downside thresholds: | 1,410.952 for Russell, 3,482.78 for S&P; 75% of initial levels
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| Pricing date: | Dec. 12
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| Settlement date: | Dec. 15
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| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
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| Fees: | 2%
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| Cusip: | 40443B411
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