Published on 4/7/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.06 million autocallable contingent income barrier notes on three indexes
New York, April 8 – HSBC USA Inc. priced $2.06 million of autocallable contingent income barrier notes due March 27, 2028 linked to the S&P 500 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 7.25%, paid quarterly, if each underlying index closes at or above its 70% barrier level on the related quarterly observation date.
The securities will be called automatically at par if the closing level of the worst performing index is greater than or equal to its initial level on any quarterly observation date starting on March 24, 2025.
The payout at maturity will be par if the worst performing index ends at or above its 70% barrier value. Otherwise, investors will lose 1% for every 1% that the worst performing index declines.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index, Dow Jones industrial average and Russell 2000 index
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| Amount: | $2.06 million
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| Maturity: | March 27, 2028
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| Coupon: | 7.25%, paid quarterly, if each underlying index closes at or above its 70% barrier level on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above the barrier level, par; otherwise, 1% loss for every 1% that worst performing index declines from initial level
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| Call: | Automatically at par if the closing level of the worst performing index is greater than or equal to its initial level on any quarterly observation date starting on March 24, 2025
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| Initial levels: | 39,475.90 for Dow Jones industrial average, 2,071.998 for Russell 2000, 5,234.18 for S&P 500
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| Coupon barriers: | 27,633.13 for Dow Jones industrial average, 1,450.3986 for Russell 2000, 3,663.926 for S&P 500, 70% of initial levels
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| Barrier levels: | 27,633.13 for Dow Jones industrial average, 1,450.3986 for Russell 2000, 3,663.926 for S&P 500, 70% of initial levels
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| Pricing date: | March 22
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| Settlement date: | March 27
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.1%
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| Cusip: | 40447AP32
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