Published on 4/19/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3 million trigger autocallable contingent yield notes on Russell, S&P
By William Gullotti
Buffalo, N.Y., April 19 – HSBC USA Inc. priced $3 million of trigger autocallable contingent yield notes due April 3, 2029 linked to the performance of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will bear interest at 9.2% per year, paid quarterly if each index closes at or above its 70% coupon barrier on the relevant observation date.
The notes will be called at par of $10 plus the coupon if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its 70% downside threshold.
Otherwise, investors will lose 1% for every 1% decline of the laggard index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index
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| Amount: | $3 million
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| Maturity: | April 3, 2029
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| Coupon: | 9.2% annual rate, paid quarterly if each index closes at or above its 70% coupon barrier on the relevant observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon if each index finishes at or above downside threshold; otherwise, 1% loss for the 1% decline of laggard index from initial level
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| Call: | At par plus the coupon if each index closes at or above initial level on any quarterly observation date after six months
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| Initial index levels: | 2,124.547 for Russell, 5,254.35 for S&P
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| Coupon barriers: | 1,487.183 for Russell, 3,678.05 for S&P; 70% of initial levels
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| Downside thresholds: | 1,487.183 for Russell, 3,678.05 for S&P; 70% of initial levels
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| Pricing date: | March 28
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| Settlement date: | April 3
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40443V409
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