Published on 2/21/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1 million autocallable contingent income barrier notes on three indexes
New York, Feb. 21 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due Feb. 16, 2027 linked to the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 9.63%, paid monthly, if each underlying index closes at or above its 70% barrier level on the related monthly 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 Feb. 12, 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, Russell 2000 index and Nasdaq-100 index
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| Amount: | $1 million
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| Maturity: | Feb. 16, 2027
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| Coupon: | 9.63%, paid monthly, if each underlying index closes at or above its 70% barrier level on the related monthly 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 Feb. 12, 2025
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| Initial levels: | 17,962.40 for Nasdaq-100, 2,009.992 for Russell 2000, 5,026.61 for S&P 500
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| Coupon barriers: | 12,573.68 for Nasdaq-100, 1,406.9944 for Russell 2000, 3,518.627 for S&P 500, 70% of initial levels
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| Barrier levels: | 12,573.68 for Nasdaq-100, 1,406.9944 for Russell 2000, 3,518.627 for S&P 500, 70% of initial levels
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| Pricing date: | Feb. 9
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| Settlement date: | Feb. 14
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40447AZN7
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