Published on 2/8/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $712,000 10.3% callable contingent income barrier notes tied to S&P, ETF
Chicago, Feb. 8 – HSBC USA Inc. priced $712,000 of callable contingent income barrier notes due May 26, 2026 linked to the least performing of the S&P 500 index and SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.3%, paid semiannually, if each underlying asset closes at or above its 60% barrier level on the related semiannual observation date.
The securities may be called at par starting on Nov. 27, 2023 and on any subsequent semiannual determination date at the option of the issuer.
The payout at maturity will be par if each asset ends at or above its 60% barrier value. Otherwise, investors will lose 1% for every 1% that the worst performer declines.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying assets: | S&P 500 index and SPDR S&P Biotech ETF
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| Amount: | $712,000
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| Maturity: | May 26, 2026
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| Coupon: | 10.3% annual rate, paid semiannually, if each underlying asset closes at or above its barrier level on the related observation date
|
| Price: | Par
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| Payout at maturity: | If each asset finishes at or above the barrier level par; 1% loss for every 1% that worst performing asset declines if it ends below barrier value
|
| Call: | At par starting on Nov. 27, 2023 and on any subsequent semiannual determination date
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| Initial levels: | 4,191.98 for index, $85.37 for ETF
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| Barrier levels: | 2,515.188 for index, $51.222 for ETF, 60% of initial level
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| Pricing date: | May 19, 2023
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| Settlement date: | May 24, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40447AAG9
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