Published on 11/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $332,000 autocallable buffered notes with step-up premium on three indexes
By Kiku Steinfeld
Chicago, Nov. 1 – HSBC USA Inc. priced $332,000 of 0% autocallable buffered notes with step-up premium and upside participation due April 6, 2026 linked to the Nasdaq-100 index, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an 13.63% annualized premium if the indexes close at or above initial levels on any semiannual call observation date starting April 3, 2024.
The payout will be par plus any gain of the worst performing index. The payout will be par if any index falls up to 80% of its initial level. Otherwise, investors will lose 1% for every 1% decline of the worst performing index beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable buffered notes with step-up premium and upside participation
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| Underlying index: | Nasdaq-100 index, S&P 500 index, Russell 2000 index
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| Amount: | $332,000
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| Maturity: | April 6, 2026
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| Coupon: | 0%
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| Price: | Par
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| Call: | At par plus an 13.63% annualized premium if each index closes at or above initial levels on any semiannual call observation date starting April 3, 2024
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| Payout at maturity: | Par plus any gain of worst performing index; par if any index falls but not below buffer; otherwise, 1% loss for every 1% decline of the worst performing index beyond 20%
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| Initial levels: | 13,181.35 for Nasdaq, 4,109.31 for S&P, 1,802.484 for Russell
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| Buffer levels: | 10,545.08 for Nasdaq, 3,287.448 for S&P, 1,441.9872 for Russell; 80% of initial levels
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| Pricing date: | March 31, 2023
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| Settlement date: | April 5, 2023
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40441X2L3
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